Is there a theory more worthwhile than capitalism for industry, production, and trade?

Depends on what your goal is. FREE Capitalism is the only means by which two people can enter into a VOLUNTARY agreement to do business. If so and so has a widget and you want that widget then you are free to agree on the terms of sale. If that widget is in such demand and people want that widget then that man becomes rich by his efforts due to VOLUNTARY EXCHANGES. No one forces any other person to do business with another in a free trade capitalistic market.

That also includes if your widget is no good you are free to fail.

Well PURE capitalism doesn't accomplish those goals very well. Pure capitalism leads to monopolies, price fixing, false advertising, etc...

There must be some level of government oversight to ensure that the free market remains free.

Liberals are so stupid they think common sense government oversight is the same as socialism. Then again liberals think fire departments and medicare are socialism. Thats really how far removed from reality they are. Like Felonious Monkey.

What you mean is there a way for markets to work where you get more out of it without putting any more effort into it.

I like the idea of the resource based economy.

Yes, there is. It is called robotics. Watch the movie "I, Robot" starring Will Smith and you will get the idea. Such a world is coming........