Your conception of Socialism is incredibly ignorant, and based on a mere manifestation of a subset of its ideologies that manifested from the Third International (And really, one that has more affinities with Right-Wing/Fascist movements than the formulations of Socialism that existed before the Anarchist split and the Second International. Or Luxemburgism. Or the Libertarian Socialist movements in general. Or Autonomism. I could go on). I'm not sure you would know that, given your prejudices.
Also, your conception of freedom is borne from a false conflation of the freedom of reified capital and the metaphysical conception of freedom. When you say "freedom," you refer to the absolute, unimpeded freedom of the relations between a populace and the various manifestations of that reified capital, and take it as an absolute invariant, something that is of and commensurate with a free society, which is an utterly and absolutely ridiculous notion for anyone who traces any notion of the word freedom honestly (Though not surprising, since the freedom of the American nation itself during its formation was originally formulated due to its desire for freedom of trade).
Saying that China is not an authoritarian capitalist country is to be ignorant of Chinese history since the 1970s.
You're even off on the desires of American Liberals, and that was the one thing you were closest on by far. They don't want a police state, they're just so locked into the dominant rhetoric and ideologies of the country that they allow that to seduce them and cloak what's actually occurring within those seductive ideologies (It's more complex than this, but I interrupted my morning reading for this and I need to get back to it). This is, of course, how we got Obama as he is right now.