What matters is also subjective.
I didn't ask why the matrix wasn't Utopian. I asked why the matrix wasn't set before the information age. Humans lived for thousands of years before we had phones and computers and our minds seemed to cope just fine.
He's generally considered the bad guy because the film portrays him as the bad guy, and audiences are generally happy to accept whatever moral judgements they're told to accept (a point that's occasionally made by better works of philosophical fiction).
Why do you think it matters if it's fake or not? As far as you or I know we could be living in the matrix right now. If you suspected that were true, what difference would it make to you? Would you stop enjoying the things you enjoy? Would the relationships you had formed with other people cease to matter? If you banged your head against the wall, would it no longer hurt because the wall wasn't real?
Nor did Morpheus. If he'd wanted Cypher and the others to have a real choice he could have told them what actually awaited them outside the matrix, instead of using sleazy marketing techniques. I don't think those security guards whom Neo, Trinity and the others slaughtered had much of a choice, for that matter.
So does mass murder.
So was The Birth of a Nation. That doesn't mean we have to agree with it.