Even though the "Preacher" now looks pitiful, I haven't forgotten the arrogance he subtly hinted at when he first appeared. Moreover, I don't believe he genuinely doesn't understand why Taoyuan Village is considered an enemy by Luo Mountain.
From my personal standpoint, there's no real reason to prevent others from dreaming, yet for an organization like Luo Mountain, allowing the establishment of a "Utopian Realm" is quite unreasonable. Firstly, in my understanding, the Diviner is highly unlikely to agree. He seems to have considerable expectations about helping human civilization reach the interstellar era, and a spiritual utopia created merely to satisfy current human desires goes against his expectations.