your extrapolation-bearing AGI is going to tile the universe with American flags

You're right, that would be terrible. They should be Texan flags.

I think there other failure modes that are significant- for example, a world where women are given full moral weight and autonomy would probably be terrifying to someone whose society is centered around women being the most valuable property there is (for both men and women, I imagine- abuse leaves quite the mark on minds).