At first, yes. To make that shift you have to throw the aristocracy, and perhaps a monarchy here or there, into the trash and divvy up the spoils. Over time, the new system can (and some say will inevitably) revert. Once you have enough wealth concentration in the hands of a few, you essentially re-create an aristocracy and the feudal system that goes with it.

It can also be argued that a feudal system is capitalist to begin with. Land and laborers to work it, used to be the key deciding factor in wealth and therefore, power. Wars are where you steal land from others, assuming control of the people that live on it, thereby securing more wealth and power. The industrial revolution saw a gradual shift towards energy production and consumption as a defining factor. So still somewhat land based, but with very different constraints and far less dependence on who lives on it. Now, in the late information age, access to energy and data are emerging as the main deciding factors. But it's also not hard to imagine players that have the most access to energy and data as feudal lords, provided they can influence politics and people's lives in the same way a feudal system can (just without borders). And all of that is top-to-bottom running within a capitalist framework.

Did we improve things? Well, moving towards a central government that supports an actual justice system that isn't prey to your employer or landlord's whims (feudal lord) is a huge win. For instance in the UK, that happened a long time ago. In practice, I think that is still mostly true, but there are some lingering artifacts and maybe even some creep backwards. Consider de-facto class systems, institutionalized bigotry, and racism. On balance, I'd say yes, but I can't say with certainty that it's an absolute win.