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Nick_Tarleton comments on Human values differ as much as values can differ - Less Wrong
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What sort of situation are you thinking of where X would be better than Y for one person and worse for none, but Y better than X all things considered?
Doh! You're right.
I think of the concept of Pareto optimality as being useless because the path between the initial allocation, and a really good allocation, is usually littered with Pareto-optimums that must be broken through to get to the really good allocation. The really-good allocation is itself presumably Pareto-optimal. But you shouldn't get into the habit of thinking that's worth much.