Who said anything is fine? It's both more evocative and more effective to recognize reality as reality than to insist that it's fantasy.

Although one definition of dystopia is specifically about imaginary future states, this is not the only connotation for the word. I would hazard to say that most people would understand you perfectly if you said "we are living in a dystopia," without believing you were trying to say we are living in a fantasy land.

Dystopia does not mean fantasy