It's only unrealistic to you because you don't really want to work to attain it. Madara was the same. He knew that, by "showing their guts," people could come to understand one another and peace could be created. However, he let himself become overwhelmed by the pain of his losses, and gave up on reality. Just because of his own pain, he decided that the real world was not worth living in, that people could never understand each other. If he had been able to accept his pain, peace could have been created a long time ago.