Adam Smith and old school Capitalism hate rent seeking though, and when does moving all jobs to AI companies become rent seeking? It definitely destroys the labor/capital relationship part of Capitalism, but it's goal is to also turn the entire economy into rent seeking. Something considered very bad in traditional Capitalist thought. The current path has basically the total destruction of actual Capitalist thought at it's heart.

The problem is that libertarians have been able to retcon their fan fiction into what Capitalism is and gloss over the original anti-rent seeking, anti-monopoly, pro-government oversight parts that Capitalism REQUIRES in order to stay healthy,functioning, and beneficial to society. And people just accept that 'capitalism good' = 'late 20th/early 21st century libertarian fanfiction of what capitalism is' is the definition of Capitalism, when it is very far from it and has zero relation to the functional Capitalism that lifted the world up.

Combining this late 20th/early 21st century fanfiction version of Capitalism with the current tech company goals for AI is something totally new, zero percent Capitalism, and 100% would be hated by original Capitalist thinkers as damaging.