Smith here isn’t arguing for a moral reevaluation of selfishness but rather pointing out that market systems have evolved to take advantage of even selfishness.

Smith here isn’t arguing for a moral reevaluation of selfishness but rather pointing out that market systems have evolved to take advantage of even selfishness. In areas where this market systems haven’t evolved proper mechanisms yet, the expectation would be high levels of fraud. For instance in the case of butchers, people can trust a local butcher more than a traveling one - and in modern capitalism, regulations allow monopolies to maintain a minimal level of quality.