Also, I should clarify another point:

If you and EY think that the PD players don't like to rat on their friends, all you are saying is that those standard PD payoffs aren't the ones that match the players' real utility functions, because the real functions would include a hefty penalty for being a rat.

My point was that I previously agreed with EY that the payoff matrix doesn't accurately represent how people would perceive the situation if they were in a LPDS, but that I now think that people's reaction to it could just as well be explained by assuming that they accept the canonical payoff matrix as accurate, but pursue those utilities under a constrained decision theory. And also, that their intuitions are due to that decision theory, not necessarily from valuing the outcomes differently.