John P is right, my brain was in neutral. The diode obviously doesn't return the energy to the capacitor since there's no path to ground for the return current. To do that you'd have to disconnect the input of the inductor from the capacitor and connect the input to ground at the same time you turn-off the MOSFET at the right end, obviously a somewhat complex switching process. Can't offhand think of a simple way to do that.
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