That "collection of software utilities" you're talking about is an operating system. It's just how Unix is designed. The kernel is a part of that "collection of software utilities"; it's the program that manages communication between the other software and the hardware. If you just had that, I suppose it would technically "work", but it would be a very disappointing experience.

Pardon the local example, but claiming that the entire operating system other than the kernel is unimportant is like claiming that the entire Michigan highway system is unimportant for the task of driving to the upper peninsula simply because the Mackinac Bridge is an essential part of the highway system for that task, so the rest of the roads leading there are "just" a collection of roads.

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