No one said that there cannot be wide variation of conditions under capitalism, clearly (for example) the residents of a nation with a National Health Service are (in that respect) the residents of nations without such.
It is also true that 'owning classes" freak out easily and tend to believe some of their own propaganda. But one cannot read off the reality of a whole social order by echoing the mere opinoins of people living the system. The point at issue is whether or not such public servces or expanded public ownership (say of railroads) constitutes a material threat to capitalist relations - regardless of what it may do to particular capitalists. If (a) herioin marijuana, etc were legalized and (b) a state monopoly was establshed either to sell them or distribute them free, that would destroy a rather large swth of acutlly living capitalists, but it would hardly be a threat to the whole system of capitalist relations.
Carrol