You are shallow, indeed, if you view freedom as a choice between Ford and Chevy. "Buy, Buy, Buy," urges society. "Be a conformist non-conformist. Be a materialistic rebel. Wear this brand of clothing." (See doublethink.) Such self-expression is fully compatible with the System and provides an outlet for any budding revolutionary feeling. Will socialism stifle individuality? Yes, if you identify yourself by your jeans, your brand of cola, the things you buy.
Ah, this node was cooled on Everything 1 as well. Double cool.. dig it!

As for the nature of capitalism... simply put, capitalism is the wage-labor relationship and the baggage it brings. It would be correct to say that the capitalistic society that was say, 19th century England, was not very consumerist. However, consumerism is an integral part of the new capitalism (detailed by themusic in hypercapitalism.) What do you think would happen to the economy if the populace abandoned consumerism for, say, Tolstoy-esque Christian asceticism? Not that I advocate such an extreme course.

As for socialism, any argument directed against state or public ownership I usually ignore. Socialism is not necessarily statism. Look into syndicalism.

(And why am I always confused as a Marxist?)