This seems to be his most recent writing on the subject. In a comment on that post, he says that the formulation you refer to is "part of an even stranger phase of [his] earlier wild and reckless youth, age fifteen or thereabouts", so it probably doesn't make sense to argue against this as something that "Eliezer argues"; possibly better to just say something like "some have argued..." or show why it's an intuitively appealing idea and then argue that there are counterexamples.
Thanks for the link! Glad to see people have discussed this.
The principle stated there, that any "genetically easy" modification to humans should be expected to cause a net reduction of fitness, seems useful and unimpeachable. With, of course, the caveat that we're not in the ancestral environment. Smart people can get all the calories, antibiotics, and c-sections they need.
But calling it the Algernon Principle implies that we should equate "physically easy" with "genetically easy." That seems unlikely to be true in genera...
Edit: For an in-depth discussion of precisely this topic, see Nick Bostrom and Anders Sandberg's 2008 paper "The Wisdom of Nature: An Evolutionary Heuristic for Human Enhancement", available as a pdf here. This post was written before reading the paper.
There doesn't seem to be a thread discussing Eliezer's short-short story X17. While I enjoyed the story, and agreed with most of its points, I disagree with one assertion in it (and he's said it elsewhere, too, so I'm pretty sure he believes it). Edit: The story was written over a decade ago. Eliezer seems to have at least partially recanted since then.
Eliezer argues that there can't possibly be a simple surgical procedure that dramatically increases human intelligence. Any physical effect it could have, he says, would necessarily have arisen before as a mutation. Since intelligence is highly beneficial in any environment, the mutation would spread throughout our population. Thus, evolution must have already plucked all the low-hanging fruit.
But I can think of quite a few reasons why this would not be the case. Indeed, my belief is that such a surgery almost certainly exists (but it might take a superhuman intelligence to invent it). Here are the possibilities that come to mind.