Smith: "Did you know the first Matrix was designed to be a…"

Smith:               "Did you know the first Matrix was designed to be a perfect human world where none suffered, where everyone would be happy.
                        It was a disaster.  No one would accept the program. 
Entire crops were lost.             
Some believed that we lacked the programming language to describe your perfect world.  But I believe that as a species, human beings define their reality through misery and suffering.
                        The perfect world was a dream that your primitive cerebrum kept trying to wake up from, which is why the Matrix was redesigned to this."