Capitalism has been the driving mechanism for human society, progress and prosperity in modern history. It is this driving engine that is now about to fail completely.
Capitalism, as in free trade and voluntary interaction, is not going to fail. Much of the establishment of corporatist inefficiency will be in turmoil and the collateral damage for everyone may be severe, but eventually the natural order will recover better and stronger than before.
Yes, without the state, inefficiency will be eliminated. That means, that nearly nothing will be produced, as it was the case within stateless communities in the whole history of mankind. But that wasn't Capitalism. The austrian anarchocapitalists believe, that we will produce even more without the state. That's the greatest economic joke I ever heard.
You have a strange conception of the state's role in production.
To be more exact, you're conflating property and rights protection (law and police) and dispute resolution (courts) with the state.
But you don't need the state to provide any of those things. Law can be crowd-source or agreement based, ie: polycentric-law. No societal entity needs to have a monopoly on law production, that's just the way things have been largely until now. There's no reason for it to stay that way, and an alternative may (and probably will) be far better.
Similarly, courts and police can be privately provided on the market and due to changed incentives of the market will probably be far better.
Stateless communities often also had no rights protection, law, or courts. But it's possible to create not a state nor a stateless community, but rather the ideal is a
self-governed community, and by that I mean one where each individual rules himself and himself alone. Not a community which uses a collective body to govern the whole--no, I mean a community where each individual has sovereign control of himself and no one else. A truly individualist society. This has never existed because we never had the ideas explicit to try it until modern time.