Yeah, I'm not really using the distinguishing feature of the Theory of the Second Best in this post. Eliezer had made the same point as your paragraph starting "FWIW" in a post and I pointed out the connection to the Theory of the Second Best in a comment. Now I'm just using using "second best" to refer generically to any situation where group rationality conflicts with individual rationality, and we have to settle for something less than optimal.