The Oracle AI, realizing this, breaks out of its box and carefully destroys Florida in the fashion most closely resembling a hurricane that it can manage.

Seems like "minimize impact" is being applied at the wrong granularity, if a large deliberate impact is required to cancel out a large incidental one. If we break open the "utility-function maximizing agent" black box, and apply the minimum-impact rule to subgoals instead of actions, it might work better. (This does, however, require an internal architecture that supports a coherent notion of "subgoal", and maintains it in spite of suboptimality through self modifications - both large cans of worms.)