It's not so much that Americans fear complete socialism, as that they understand that socialism is a crappy system.
The constitution was created to keep the central government as small as possible with the belief that people should live in total freedom. This means that through individual accountability and self reliance, the people are not dependents of the government.
This system, is what created the only true world super power (in less than 250 years) and in the process added more wealth and prosperity to the rest of the world through trade than any other system at any given time in the history. In addition, the capitalist system in America has created the most significant technological & medical advances the world has ever seen - many of which have directly affected and improved the lives of more people around the world than any other nation. This system has also created the best Health Care in the world. Health care rich with technology that is exported around the world.
America through capitalism, quickly became the largest economy by many fold and from that enormous economy sends more food and financial aide to the world than any other Nation and more than nearly all Nations combined. Capitalism, is what built that.
Capitalism, is what attracts millions of immigrants every year. Capitalism is what gives any person in this country the ability to go from the lowest rung to the highest rung of society in one generation.
When people talk about Obama being a 'Socialist' its because he is. He has demonstrated to be the most liberal, and most socialist leaning politician in America. His comments the other day proved that and if he looses in November that will be the defining reason.
Capitalism is what created the "American Dream" and except for those too lazy to pursue it, the majority of the people, including those not yet here, despise any attempt to change or alter their ability to go after that dream.
