One key difference between olalonde's plan and SIAI's plan is the assumption SIAI is making: they are assuming that any AGI will inevitably (plus or minus epsilon) self-improve itself to transhuman levels. Thus, from their perspective, olalonde's step (2) above might as well say, "build a machine that's guaranteed to eat us all", which would clearly be a bad thing.

A good summary. I'd slightly modify it in as much as they would allow the possibility that a really weak AGI may not do much in the way of FOOMing but they pretty much ignore those ones and expect they would just be a stepping stone for the developers who would go on to make better ones. (This is just my reasoning but I assume they would think similarly.)