OK, so am I misreading Yudkowsky, or are Norvig and Russell misreading Yudkowsky, or am I misreading Norvig and Russell? Because if you take "mechanism design" and "checks and balances" to have the obvious economic and political meanings in the theories of multi-agent systems, then I am pretty sure that Yudkowsky does not claim that this is where the challenge lies.
This is an introductory textbook for students who haven't been exposed to these ideas before. The paragraph makes a lot more sense under that assumption, than under the assumption they are trying to be technically correct down to every term they use.
AI: A Modern Approach is by far the dominant textbook in the field. It is used in 1200 universities, and is the 25th most-cited publication in computer science. If you're going to learn AI, this is how you learn it.
Luckily, the concepts of AGI and Friendly AI get pretty good treatment in the 3rd edition, released in 2009.
The Singularity is mentioned in the first chapter on page 12. Both AGI and Friendly AI are also mentioned in the first chapter, on page 27:
Chapter 26 is about the philosophy AI, and section 26.3 is "The Ethics and Risks of Developing Artificial Intelligence." They are:
Each of those sections is one or two paragraphs long. The final risk of AI takes up 3.5 pages: (6) The Success of AI might mean the end of the human race. Here's a snippet:
Then they mention Moravec, Kurzweil, and transhumanism, before returning to a more concerned tone about AI. They cover Asimov's three laws of robotics, and then:
It's good this work is getting such mainstream coverage!