While I agree that labor theory of value is wrong, I believe that theory of value based on utility is even less descriptive of the real world (and in that sense a regress).
People are not utility calculating machines. I would say these utility theories (I would call them theories of subjective value) have several flaws:
1. There are some things that all sane humans objectively (universally) value (things like survival, not being harmed, time and energy expenditure).
2. Sometimes humans simply value things that other humans value, as a shortcut to expending energy in figuring out what to value.
3. Any reasonably good theory value has to incorporate incomplete information that people have, and thus might value something that is not valuable and vice versa due to lack of information.
Some of these lead to nonlinear behavior which is really not well captured by an additive theory such as marginal theory of value.