Personally, I think it does as it shows, through use of characteristics, that power overtakes us all. Plus it uses a real life example---the Russian revolution.
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I must agree with litteacher. I think the story speaks more to the abuse of power than the creation of a Utopian society. As pointed out, a Utopian society is simply impossible based upon the differences between the individuals seen within the confines of any society.
Animal Farm accurately portrays how Man can create a dystopian society. As others have stated, the work was a scathing commentary on what had happened in early Soviet Russia.
It is true that creating a utopia is impossible -- but that fact does not preclude us getting close. But in order to get close, a functional society must exist. If power is unchecked, society cannot effectively function, and dystopia is the result.
I think that it's not just the thing about power. Sure, the pigs take power, but so much of what Orwell is talking about has to do with the other animals. Utopia is impossible because Mollie just wants an easy life with pretty things. It's impossible because Boxer will follow whatever authority says without thinking. Now... does that accurately portray things? I suppose it does. Greed, selfishness, stupidity. What else is left?
Many people consider Animal Farm an especially effective satire of utopianisn. It certainly fits more than just the example that inspired it (the Soviet Union). Many attempts to achieve utopias have resulted instead in dystopias (Communist China would be another example). The record of communism in the 20th century is not very impressive (to say the least), which is one reason that there are just a few communist states still around (North Korea, ironically, being one of them).
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