Given that most people are fairly clueless and incapable of knowing what is good for them, using subjective happiness as a measure of utility is profoundly flawed. Most people are like small children; they need to be kept from self-harm rather than have their whims indulged. But not having their whims indulged precluded them from being "happy."

Thus a better way to measure utility would be outcome-based (e.g. indicators of health, educational attainment, rate of suicide, rate of violent crime, etc.).