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Technically yes. But there would be a strong incentive to undo any safeguards. Basically you'd have to ban or limit inheritance completely.
The problem with relying on accumulation of money as a measure of success is that money == power. Once you have a critical mass of wealthy people it would be easy to change any laws to allow for nepotism again.
Saying, "nothings perfect" is an argument that could be used in any scenerio. It's the definition of nit picking.
Quite the contrary if the flaw is built into the base of the system. If you base the economic system around the accumulation of property, you can't expect people to do things out of abstract ideals. Your idea of capitalism requires selflessness and altruism which are not rewarded in that system.
You moved the words around but it doesnt change their meaning. Anyone could argue any system has flaws built into it.