I think the bigger problem with the current libertarian tilt is that it’s [weak] libertarianism with a promise predicated on a first-best world, i.e., a socio-economic system that functions in an un-distorted manner. The problem is that there is no red button to be hit which would remove the government from the economy (including regulatory protections for the “right firms” and picking-winners policies through taxation/tax breaks), and so libertarian-inspired economic reform is always going to be piecemeal and, more likely than not, directed at those areas of economic life where the organizing costs are high and/or there is little public sympathy because of ideological reasons. And so it’s not surprising that Tea Party types go after labor unions, farm subsidies, environmental regulations, etc. but tend to leave regulatory and tax structures favorable to big business interests alone. They can’t win all the battles, so they try to win some. The result is that “crony capitalism” is not just perpetuated, it’s strengthened.
Modestinus points out the libertarian myth in the comments of this post where he goes over the leftist folks over at Red Egg Review. There are certainly other reasons to look askance on libertarian rhetoric, reasons moral, political, and economic. But this more pragmatic approach is helpful, I think.