Interesting. If you look at Wiktionary or if you prefer, your favorite etymology dictionary, the word utilize is descended from Latin from the French word utiliser, via the Italian utilizzare which got it from the Latin utilis. All of those words mean to use.
I'd be the last person to say you're wrong. Matters of grammar and usage ultimately boil down to does it feel right and current usage. As is usual with these things, other people have different feelings about it. That's what dialect is I think.