Very good idea. Dystopias are far more common in writing than utopias are. I found out just recently that
Brave New World had a sequel called
Island in which all the bad things were replaced with good things. Of course, the novel still has conflict in it .... it's not written for toddlers .... but since I havent read either of the two books, I cant give any more details.
A society like this could still evolve into a dystopia. In fact I think it's a common enough trope .... I've seen it three times myself, and consider that I don't do a whole lot of reading. The basic idea is that humans are so kind and gentle that they lose the ability to fight off their natural predators, such as lions, wolves, and so on .... or that humans are so kind and gentle that they submit willingly to an invasion from aliens in which all humans irrevocably become slaves .... or, in the third story, this is just a small society of humans, and they are massacred by other humans who did not drop their arms.
Yet, empathy and pacifism are not the same thing. A highly empathic society could in fact be very warlike, in the sense that there would be a class of people, probably men, who would risk their lives to fight off even the slightest threat to their nation's women and children, while the women and children would devote themselves to protecting the even weaker members of their society.
My own people are very pacifistic, and this is biologically bound, so that they are pacifists in all times and all places, and therefore, atlhough there is still some natural human variation between different political movements at different times, the so-called opportunistic invasion, where a small but virulent army rides in and makes toys of the entire remainder of the human population, simply never happens. I'm not sure that I'd say they have more empathy for each other than we do, though .... they still have conflicts of all sorts, and even if they are typically less violent, they still have many problems to deal with in their societies.
Basically your path is a wide open field. I do agree at least with this:
At the very least I think there would be much fewer wars. Wars over resources would still happen (after all other means of dialogue have been exhausted) but all those pointless dick wagging wars waged over ideology, past grievances or for the sake of someone's ego would not exist.
But you could perhaps come up with creative ways to start long-running conflicts that
*don't* involve war.