I think my objection, as a past donor, is that: by producing & deliberately posting in a high-profile place something like this fanfic, Eliezer - the founder & public face of SIAI - is damaging the serious public image which is necessary for SIAI to accomplish its goals.
SIAI works in the real world; I don't think it can afford for its people to make contrarian choices to watch anime instead of signal.
Gwern, I refer you to http://xkcd.com/137/
At the risk of violent downvoting, one of the many reference points that jumped into my mind while reading was 'the closest thing I've experienced to jumping between nested levels of reality is on drugs'.
So I'd intended this story as a bit of utterly deranged fun, but it got out of control and ended up as a deep philosophical exploration, and now those of you who care will have to wade through the insanity. I'm sorry. I just can't seem to help myself.
I know that writing crossover fanfiction is considered one of the lower levels to which an author can sink. Alas, I've always been a sucker for audacity, and I am the sort of person who couldn't resist trying to top the entire... but never mind, you can see for yourself.
Click on to read my latest story and first fanfiction, a Vernor Vinge x Greg Egan crackfic.