That's not 'good and evil', just 'desired and undesired' - much milder and broader concepts.
I call an action "good" when it is what you should do - i.e. it has normative force behind it. This includes all choices. So, yes, it is a broader concept than traditional 'goodness,' but thats fine.
I usually reserve "desired and undesired" to refer to the psychological impulses that we sometimes fight and sometimes go along with. I may desire that second piece of chocolate cake, but if I really think it through, I don't really want to eat it - I shouldn't eat it. The economist's utility function probably refers to desires since the goal is to model actual behavior, but the ethicist's utility function is built with a completely different goal in mind.
Tyler Cowen argues in a TED talk (~15 min) that stories pervade our mental lives. He thinks they are a major source of cognitive biases and, on the margin, we should be more suspicious of them - especially simple stories. Here's an interesting quote about the meta-level: