So material waste can be directly tied to cost. If you're trying to bring down cost then you're going to try to reduce waste correct? That's why there is so much work being done for reusable launch vehicles
For space debris and pollution I don't think we can squarely blame capitalism. Under a purely communist economy there's no guarentee that anyone would care any more about it than currently And you can attack that issue by a combination of penalising companies that create debris and rewarding those that remove it under a capitalist economy
As for it not being entirely comparable. Sure the government spent a lot of money on that early R&D. But do we think that if we banned companies from doing this kind of work that govt agencies like NASA would be necessarily more cost effective, cause less pollution, and less debris?
Do you have any data to back that up? It would be quite interesting
I don't think regulation is impossible to achieve, look at the EU. And what I am fairly sure of is you have better odds of passing regulation than replacing capitalism entirely