"Trying to make socialism work in a capitalist society is like trying to make a Diesel engine run on petrol. "
Although what Danny Finkelstein is saying that even if you strip out the capitalism completely no other system has been devised that works. And that is indisputably true: I am not sure that it is fair though to extrapolate from Laura Pidcock's silly remarks, or the equally silly (if amusing) "I've never kissed a Tory" mugs at labour conferences, that the end of the road = the Stasi. I suspect that what has most affected Lord Finkelstein are the remarks of Seumas Milne, quoted at the end of the article, about wishing we could have East Germany back - minus the Stasi. His (DF's) point about that, which also is indisputable, is that you cannot have one without the other.
What you CAN have, which he of course accepts, is non-Toryism, or reformed capitalism without the theoretical socialism of Paul Mason, which he rightly satirises.
But I come back to the point I made earlier: Lord Finkelstein is a classic liberal, left-of-centre Tory ("what is he doing in the Tory party anyway?") as his colleague ex-communist David Aaronovitch once playfully remarked. So I would in turn like to ask the OP what he thinks is so reprehensible about the "liberalism" of a moderate Tory Lord?