No, I don't believe Capitalism destroyed human compassion.
From what I know, the Rockefeller family funded women's liberation, so they could tax the other half of the population.
While doing that it broke up the family and kids would start school at a younger age. The government took over education and indoctrinated kids how to think. With government run schools teaching government values, made kids become less compassionate. Why do you think education sucks, because the government took over and instilled socialistic values in children.
They also put fluoride in the water supply. Hitler did this to make the people more docile. So it could be with all the fluoride, people don't care as much.
Also, we are more immune to violence in movies and video games. Most killings and slaughterings don't even phase us anymore.
The economy doesn't help either, since the Federal Reserve inflated the money supply, it transferred the wealth from the poor to the rich. Poor people now pay higher prices. More people are unemployed and the standard of living isn't that great for most people. So when your already struggling with your own foreclosure, job loss, or whatever your ailment may be, it might be hard to be compassionate.