Doesn't the "coherent" aspect of "coherent extrapolated volition" imply, generally speaking, that it's not democracy-of-values, so to speak? That is to say, CEV of humanity is supposed to output something that follows on from the extrapolated values of both the guy on the street corner holding a "Death to all fags" sign who's been arrested twice for assaulting gay men outside bars, and the queer fellow walking past him -- if prior to the implementation of a CEV-using FAI the former should successfully mobilize raise the visibility of his standpoint so much that the world becomes very polarized with many openly-homophobic people and a small number of people who aren't, FAI won't then execute all the queers because the majority wanted it. AFAIK that's pretty fundamental to the definition of the term...
Presumably the sign guy based his hatred on a mistaken belief (e.g. "God is always right and he told me gays are Evil.") Dr Evil was implied, I think, to have different terminal values; if he didn't then CEV would be fine with him, and it would also ruin the appropriateness his name.
It’s the year 2045, and Dr. Evil and the Singularity Institute have been in a long and grueling race to be the first to achieve machine intelligence, thereby controlling the course of the Singularity and the fate of the universe. Unfortunately for Dr. Evil, SIAI is ahead in the game. Its Friendly AI is undergoing final testing, and Coherent Extrapolated Volition is scheduled to begin in a week. Dr. Evil learns of this news, but there’s not much he can do, or so it seems. He has succeeded in developing brain scanning and emulation technology, but the emulation speed is still way too slow to be competitive.
There is no way to catch up with SIAI's superior technology in time, but Dr. Evil suddenly realizes that maybe he doesn’t have to. CEV is supposed to give equal weighting to all of humanity, and surely uploads count as human. If he had enough storage space, he could simply upload himself, and then make a trillion copies of the upload. The rest of humanity would end up with less than 1% weight in CEV. Not perfect, but he could live with that. Unfortunately he only has enough storage for a few hundred uploads. What to do…
Ah ha, compression! A trillion identical copies of an object would compress down to be only a little bit larger than one copy. But would CEV count compressed identical copies to be separate individuals? Maybe, maybe not. To be sure, Dr. Evil gives each copy a unique experience before adding it to the giant compressed archive. Since they still share almost all of the same information, a trillion copies, after compression, just manages to fit inside the available space.
Now Dr. Evil sits back and relaxes. Come next week, the Singularity Institute and rest of humanity are in for a rather rude surprise!