I disagree with your point that "private property is an invention of the State". There is no need for any state to claim property on something. As you said, as long as you can defend what you have, it "belongs" to you. I'm pretty sure prehistoric men had a concept of property. Even animals have a sense of property. A dog will defend the bone it likes to chew on. A bird will fight to defend its nest. Property is rather natural.
I however agree when you say that intellectual property is an invention of the State, because that is precisely where it originates: the granting of monopoly to an individual by the hand of the King. There is no natural root in intellectual property.
> workers who lived in "company towns", in a life one step away from indentured servitude
Again, please put this rhetoric in perspective, not in the eyes of a 21st century person from a developped society, but in the eyes of a person of that time, who had the choice between staying in an enpoverished countryside, potentially victim of starvation and malnourishment, and the perspective of having a stable, paid job in a factory. People were NOT stupid. They made the choice of "more gains", not less. They ended up richer and in better position than where they started. They progressed on the social ladder. The very same story is happening with all these workers in China, queuing outside of Foxconn to get a good and sustainable job, compared to the Nothing they had in the countryside.
> The common thread between democracy and capitalism is to lessen the corrupting influence of power by distributing it: one person = one vote
Totally agree with the decentralization of power, but democracy is a poor tool to reach that goal. You elect high ranking officials who are above the laws. Who are all RICH, without exception. Who have immense powers over other individuals. And who can use violence to force their laws on you, or make you go to war and lose your life if they decide to do so. Government is, by itself, a huge body of asymmetrical power against individuals. You do not "choose" it, when you are born you are already, automatically, subject to it.
When you buy some goods, however, every dollar you spend is a vote for a product, a company. Should that company screw up, you will not buy it again. Its reputation will worsen. It will lose customers. It may go bankrupt. It is, actually, at the mercy of the decentralized power of customers who AGREE to buy it everyday or on a regular basis.
Governments (almost) never go bankrupt. Instead, they will tax you to death, they will take your property and declare it theirs (like when they forbid possession of Gold). And they will use violence to punish you and put you away in prison if you do not comply. And you will have no way out, but to leave the country (if you can).
Governments CAN be useful, but I think in most developed countries they have gone way further than what their initial role was supposed to be. That's a vast subject, anyway.