Maybe that's because your image of "commies" is formed by US propaganda. (just guessing) As non-USian I can tell you that the way that US media used to tell about Communist countries isn't much different from what USSR told it's people about the Capitalists.
Both are propaganda and so is this film, even if very well made. Basically it shows good aspects of life in rapidly industrializing early USSR cities. It's shows sportsmen/women and people having fun in their freetime. That's real and maybe it suprises you, but people have fun everywhere in world. Communist, capitalist, fascist or democratic society, people are just people.
The world isn't simple black and white as propaganda makes it look like. In the reality of this very same "Soviet workers paradise" that you see on the film people were also deported to Siberia and killed due to their ethnic background or differing political views. People were dragged from their homes, put on fake trial and shot for pretty much no other reason than to cause terror and solidify Stalin's personal power.
It's not like everyone in US is gloomy either. They have Guantanamo, CIA secret prisons across the world, assasinations, death penalty, torture, etc, but still lots of people are "happiest, tannest, most fit capitalists and it looks like capitalism worked - for awhile at least" ;) I'm not saying that those - IMO barbaric - things that US govt. does today are anywhere near tragedy caused by Stalin, they are not, Stalin was far worse. But you get the picture, the world isn't all black and white.
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