Considering Starfleet wanted to dismantle Data, commit genocide against the Borg, kidnap the Baku and had a messed up, semi WWI style peace treaty with the Cardassians, what Utopian ideals did they ever have? Picard believed in the kool aid he was drinking (or taught from school as stated by Miles O'Brien in DS9 Hard Time), the righteousness of the UFP and Starfleet.
The UFP and Starfleet are lovely places to live and work, but they are about as utopia as real, modern day life in the UK and life in the British Army is now, compared to live in the UK and British Army was in 1720.