Everything Omega does is horribly problematic because Omega is at best an UFAI. I've never seen "preemptively neutralize Omega completely" offered as an option in any of the hypothetical scenarios even though that's obviously the very best choice.
Is it really in anyone's best interest to ever cooperate with Omega given that Omega seems intent on continuing a belligerent campaign of threats against humanity? "I'll give you a choice between $1,000,000 or $1,000 today, but tomorrow I might threaten to slap you or throw you in hell. Oh, btw, I just simulated you against your will 2^100 times to maintain my perfect record on one/two-boxing."
I may be overly tired and that may sound like hyperbole, but I do think that any rational agent encountering a far more powerful agent known to be at least not-friendly should think long and hard about the probability that the powerful agent can be trusted with even seemingly innocuous situations. There may be no way to Win. Some form of defection or defiance of the powerful agent may yield more dignity utilons than playing along with any of the choices offered by Omega. Survival machines may not value dignity and self-determination, but many humans value them quite highly.
I'm using this comment to test the -5 karma rule. Just ignore it.
So I have a conundrum. Imagine that Omega comes to you and offers you two choices:
First choice: You get a moment of moderate pain, let's say a slap and then another slap, so that your face hurts for a couple of minutes with some anguish. Now after that pain has faded and you still have the memory of it, Omega measures your discomfort and gives you exactly the amount of money that gives enough joy to compensate the pain and then a cent. By construction, the utility of this choice is one cent.
Second choice: Omega inflicts on you hell for a finite amount of time. Your worst fears all come true, you are unable to distinguish between reality and this hell, the most painful sensations you will experience. After this finite amount of time is over, Omega deletes all memory of it and gives you essentially unlimited monetary funds but still, this experience does not quite compensate for the previously experienced hell if you would remember it. By construction, the expected value of this choice is negative.[1]
If we go by expected value, the first choice is obviously better. Of course Omega forces you to take one choice or you will just get hell forever, we want our thought experiment to work. But if we go by the decision procedure to choose the option in which our future self will feel best, the second choice seems better. I have not yet found a satisfying solution to this apparent paradox. Essentially, how does a rational actor deal with discomfort to get to a pleasurable experience?
[1] I realize that this might be a weak point of my argument. Do we just simply add up positive and negative utilons to get our expected value? Or do we already take into consideration the process of forgetting the pain? Maybe therein lies a solution to this paradox.