The goal of "judging another by their character" is a noble one, and sure, there will always be elements of racism, abuse, and so forth, as you say, but the amount of it can be reduced to large degree (i.e., no slavery, no segregation, no race-based laws, etc.).
I'm not sure I'd call that "utopian". However, this noble idea has certainly been used by the Left to justify less noble ideals like "equity", in pursuit of their "utopian" goals.
The goal of "judging another by their character" is a noble one, and sure, there will always be elements of racism, abuse, and so forth, as you say, but the amount of it can be reduced to large degree (i.e., no slavery, no segregation, no race-based laws, etc.).
I'm not sure I'd call that "utopian", though, this noble idea has certainly been used to justify less noble ideals like "equity".