Liberalism is very specifically the combination of democracy with capitalism. What we are living through is the natural consequence of trying to merge democracy with its opposite. Either you end up with a society that abolishes capitalism for some form of socialism (democracy in the economy), or you end up with a society that abolishes democracy in favor of some form of capitalism (some kind of corporate feudalism or fascism). We are living through the latter today.

I agree that over time there is an expansion of the moral sphere, but the path to moral expansion is treacherous, and we are currently in a period of backsliding. Victories won in the past are being rolled back. Some are new victories, like abortion rights in the US. Some are ancient victories, like acceptance of gay or trans people. I do agree that in general there is an expansion of this sphere, but only over very long periods of time, and in the short term it expands and contracts, sometimes violently.

We have this narrative of progress, which is an Enlightenment thought, which paints history as backwards and primitive while painting the present as progressive and advanced. Sadly, the real world is much more complicated than that. Some progress is made and some progress is lost as time marches on. It's convenient for those in power to paint the past as being worse because this is a much easier (and more profitable) strategy than actually making the present better. Be wary of progress narratives because, more often than not, they're misleading.

The world today has many wonders, but it also has more inequality than any historical period, the rising threat of nuclear war, and global ecological collapse. These are all the result of not only failure to progress, but serious regress. The point of critiquing liberal democracy is to ask how we got to such a dire situation and work towards something better than this. Anarchism is one, of several, such responses.