"am i not allowed to think allegory is dumb?"
Sure, you can think that, but nobody else in the universe does. So... good luck?
If you really think allegory is dumb, it means you don't understand allegory. How old are you?
"so it's cool to just make up stories that seem real and pass them off as reality?"
They aren't being passed off as reality, they're being used to set an example of a realistic scenario. For example, most Dr. Seuss stories are an allegory. It teaches you something. It's not real, but it's parallel to reality, so it provides an example of something that happens in real life. Star-Bellied Sneeches is an allegory to the idea of conformity and the dangers of coveting other people's lifestyle rather than seeking your own happiness. The Lorax is an allegory to recycling and the environmental impact of humans.
Animal Farm obviously didn't happen, but it's a perfect example of the dangers of Stalinism. It didn't actually happen, but it provides valid points as to why Stalinism is bad. It's an allegory, but it makes a great point. If you don't see the point, you're either retarded or Stalin.
The reason why people use allegories instead of real-world accounts is that real-world accounts can be discredited or denied. But stories are already fictional, so there's no point trying to prove it didn't happen. A lot of people try to waste time saying "WELL THAT DIDN'T HAPPEN" instead of listening to the point that is being made.
No. No animals ever took over their farm and started a system of government that eventually grew to be entirely corrupt. That never happened. But if you actually read the entire book (and have a three digit IQ), you will realize the point that is trying to be made.
You can't look at fiction and go "oh, since it didn't happen, there's nothing of value in the entire story. Guess I better throw it away and watch Justice League all day" Fiction tells us various stories, and the examples therein can be applied to real life.
"if there exists a real life example of allegory, use that instead. its simple. if no such thing exists, then maybe its false?"
did you just vomit words?