Yeah, well, I like the tune, too. I don’t hold it against anybody for wistfully wanting to wash sinful people out of religion. The problem is that it does not work that way, and it isn’t love of humanity to deny that this is so. If you want to love humanity, you have to love them with mercy and compassion that knows that people do fail and will keep failing, and not imagine that people don’t have the inclination to sin that we all have, or that they have it because their leaders are all terrible people who bring out the worst in others. We can’t shove our individual concupiscence off on religious leaders. We have to cop to the fact that we have defective senses of right and wrong.
Lennon stated: “‘Imagine’, which says: ‘Imagine that there was no more religion, no more country, no more politics,’ is virtually the Communist manifesto, even though I’m not particularly a Communist and I do not belong to any movement.” He told NME: "There is no real Communist state in the world; you must realize that. The Socialism I speak about … [is] not the way some daft Russian might do it, or the Chinese might do it. That might suit them. Us, we should have a nice … British Socialism." (Blaney, John (2007). Lennon and McCartney: Together Alone (1st ed.). Jawbone Press. ISBN 978-1-906002-02-2, as quoted by Wikapedia)
So, no, John Lennon was not talking about religion used in the wrong way. He was talking about organized religion being the source of strife in the world. He actually believed that some form of world wide communism would bring about world peace, that people competed and disagreed because they had gotten organized. That is total hogwash. To be blunt, it is the talk of somebody who did a little too much in the way of mind-altering substances. It is the talk of someone who wants to blame someone else’s faults for sin in the world.
The answer to sin in the world is the Lamb of God, who takes it away, the Lamb of God who said, “Go, and sin no more”, the Lamb of God, who emptied himself of his divinity and accepted death on a cross in order to save those who had turned away from God, not John Lennon, who naively wanted to deny that human beings have a fallen nature in the first place. Too bad the tune is copyrighted, because it is a nice tune, and deserved better lyrics, lyrics that were true.