My thoughts about what you asked are -
Some subscribe to "good and evil must both exist, for there cannot be good without evil" and also for balance reasons. Competitions - football, Olympics, etc. - for example might be described as "the strong/good" win; "the weak/evil" lose. What you seem to be asking is whether or not utopia - or a nation-utopia - can exist. Why not? It's important, I think, to ask - on which level? On the level of Humans currently? Then no. On the levels*, of the Gods and Goddesses? I'd say yes.
To take it further than just the size of a nation -
I don't know why "good and evil" are the only, or majorly-main, criteria, options. A lion killing and eating a sheep is not being evil; it is merely surviving even if we loved Simba until he grew up to be Scar, and even if we love to eat lamb; but the lion not being extinct is good. "Good" and "evil" need defining, and it depends on how one means them. Lower Animals don't have any understanding, nor merely consideration, of "good" and "evil". If bad must exist, then... why should bad people be punished so that good people can survive and thrive? Is it true that "the weak ones are there to justify the strong" - or the bad for the good? The "lowers" have to exist to prop-up the "highers"? Power dynamics and justifications and reasons, etc. - or supposedly.
The sarcastic and cynical me says at this point that I bet there is other, deeper or higher, esoteric knowledge and understanding that I don't know about yet, though. Then that seems like "good" and "evil" are manufactured. Before Humans existed on this Planet, Lower Animals went about their lives killing and eating for millions of years, or running away and hiding from being killed and eaten for millions of years; they each still do that today, but today then along pop-up Humans onto the scene, add many stories and allegories, and the dirtiness of the jew, and we have "good versus evil". I am being staunch and stubborn in thinking that utopia can exist, even if it might take 1000 years for us to reach and achieve it on this Planet.
As for the Universe further, as a whole - well, if the Universe is infinite, then good can expand outwards from central cores, to do well in bad places, but infinity keeps on going, so maybe evil - or what we consider and define as evil - might still exist always; but I also (while not certain of whether I'm right or wrong) think that the Physical Universe is finite, but the Energetic/Spiritual Universe is infinite; so if that is true, then good could outweigh evil eventually - or in e.g. the reptillians' corner of the Universe, what we consider to be evil, shall be left there forever or for a time until it can be conquered - if Karma won't come back to bite us for taking over and cleansing it. I deny Karma as "divine retribution and punishment", and I think I am correct in that, but maybe more about balance, since doing illegal substances will be its own punishment and you'll move further and further into that if you don't stop, so it's like a realisation and opportunitiy, which keeps presenting itself, to stop doing bad things and hurting yourself, and do good things and help yourself, instead, sort of like being related to Saturn, which is a harsh mistress, or a stubborn and strict father who gives tough love, so we can learn in areas where we need to. Since the point of living is "to improve Yourself and the Universe"... then just how much of the Universe can we improve, can be improved? Does it include the reptillians' domain? Can Utopia exist eventually? Is the Physical Universe finite but still growing so that we can make it utopic?
Maybe "good" and "evil" are concepts and behaviours and factors and elements that come with intelligence. As I said, lions are not evil for killing and eating sheep, but Humans being intelligent drag along with us "My idea of doing X is this", and "OK, but my idea of doing X is not that; my idea of doing Y is that", etc.; thus, forms in-groups and out-groups, because of "free will" and choice, which might split and faction, and one thing leading to another, and Karma pushing us onwards momentum-wise, and then 2 sides oppose either amicably, or amicably but still thinking the other is evil, or hostily and end up fighting. Uniting might be a choice, rather than a predisposition.
Another example is someone being a Spiritual Satanist/Zevist who agrees with the majority of teachings, but then wants to (if at all possible and realistic) split-off amicably but remain on friendly terms with Zeus but 'emigrate' or 'expatriate' elsewhere to another already-existing group/domain, or to create their own, so that they can engage in X or Y or Z, or A or B or C, but still not oppose Zeus and the Gods and Goddesses. Some or all of Zeus might consider those... perhaps defectors or splitters... to be evil, while those leavers might not return the feelings mutually back to them, and think themselves not evil but good. The jew has no friends of Zeus, yet it still has its own magic and spiritual abilities (either stolen from already-existing Zevist abilities and/or its actual own); if it weren't to be destroyed or perhaps punished for eternity, then it might still exist for eternity or until it destroys itself Naturally; take someone, a group, in-between these two - someone with their own spirituality that they somehow managed to figure out, or adopted from Zevist Spiritual abilities, but not opposing Zeus nor His People but still splitting-off to their own/another group and have a domain in the Universe (not just merely a website or get-together every Saturday afternoon).
Are these "good" or "evil"? Why?
*plural, since e.g. Führer Hitler and Lady Maxine (although, I'm not certain if Maxine is still on Earth or not at this point) are new and on the lower levels compared with LORD Zeus
These are just my thoughts. I might not be correct.