It's so true, which is funny when you remember that it was supposed to be a criticism of capitalism.
In the end, competition ends up being harmful because it is by definition a zero-sum proposition, and whether it's a game or real life people stop cooperating once they think they are competing for something. It's our animal brains screwing us by telling us that we need to ensure our own position first through dominance, when all of civilization and society is based on mutual cooperation.
The Libertarian Delusion, if you will.