Hah, I actually quoted much of that same passage on IRC in the same boxing vein! Although as presented the scenario does have some problems:

00:23 < Ralith> that was depressing as fuck
00:24 <@gwern> kind of a magical UFAI, although a LWer would naturally ask why it hasn't managed to free itself
00:24 < Ralith> gwern: gods, probably
00:24 <@gwern> Ralith: well, in this universe, gods seem killable
00:24 <@gwern> Ralith: so it doesn't actually resolve the question of how it remains boxed
00:24 < Ralith> gwern: sure, but they're probably more powerful
00:25 < Ralith> the real question is why isn't whatever entity is powerful enough to keep it in place also keeping people away from it
00:25 <@gwern> Ralith: well, the only guards listed are faeries, and among the feats attributed to it is starting a war between the mortal and faerie folk, so...
00:26 < Ralith> a faerie is the one who that info came from, yes?
00:26 < Ralith> hardly an objective source
00:26 <@gwern> Ralith: and I would think a faerie reporting that faerie guard it increases credence
00:27 < Ralith> that only faerie guard it?
00:27 <@gwern> Ralith: well, Bast mentions no other guards
00:27 < Ralith> :P
00:28 < Ralith> anything capable of keeping it in that tree should be capable of keeping people away from it
00:28 < Ralith> since the faeries are presumably trying to do both, they can't be the responsible party.
00:29 <@gwern> who said anything was keeping it in the tree?
00:29 < Ralith> gwern: I did