Taken to its extreme, imagine that someone made all your decisions for you. You would seem to have a higher utility, but you would have no free will. You would be more like a character in a book than a living person.
I think that maybe there's some way in which the amount of aliveness you have is a function of the amount of free will you have, and that your "super-utility" is utility * aliveness. So a life with less freedom could have higher utility, yet be less valuable.
You seem to be handwaving the definition of "free will" a bit here. On some level, the laws of physics "make all my decisions", but this clearly doesn't bother me. Is it really free will that matters, or the perception of it?
If Omega felt sorry for someone and (based on their own utility function) started making subtle interventions in their life, blocking off the possibility of bad choices and opening doors for good choices, all without them noticing--they'd still be reacting to their environment and would have a higher utility. Is that bad?
Yesterday I heard an interesting story on the radio about US President Obama's pick to head the Office of Information and Regulatory Affairs, Cass Sunstein. I recommend checking out the story, but here are a few key excerpts.
At the risk of starting a discussion that will be wrecked by political wrestling, I'm always hopeful when I hear about governments applying what we learn from science to policy. Not to say that this always generates good policies, but it does generate the best policies we have reason to believe will be good (so long as you ignore the issue of actual politices that might get in the way).