Capitalism didn’t kill third spaces, technology did. Niel Postman and Robert Putnam spent most of their lives writing about the creep of technology and how it destroys actual human society and its base-level interactions.
I'd say it's not even capitalism but the rabid anti-tax people/movement. Third spaces like libraries and parks are paid for by tax money, and if people keep voting against raising taxes, well guess what. No more public spaces.