As for the original posters question.

No, this is hardly the end of capitalism or its high point. Anti-communists are clutching at straws in the search for an enemy. The cold war is long over and good riddance. Capitalism has won, but that doesn't mean it has to be stupid. Capitalism is the principle that capital generates wealth. It doesn't argue for a complete absence of government from the marketplace (although some economists and politicians do). The Wealth of Nations by Adam Smith touches on this rather effectively, and its easy to find a copy online.

Obama is certainly not a communist just like McCain is not a fascist. People try and label relatively middling positions on the political spectrum with extremes reserved for the ends. Obama is in fact politically to the right of a lot of leaders of current capitalist democracies.

Government run utilities are in fact commonplace in many parts of the world. The problems with privatization are that it requires extensive regulation, as many free-market utilities are monopolies and price fixing becomes a major issue. When the utilities are run by the government they aren't run for income generation, which ensures a reasonable cap on prices that is closely related to cost of service. Providing a few essential services in this way is not the downfall of capitalism. Only the most absurd of radicals would treat this as a foot in the door, government has no interest in getting in the marketplace for luxuries, commodities, or any non-essential services. Is it that bad they want to ensure that senior citizens aren't dying because a for profit utility is turning off their heat in the depth of a Michigan winter?