I reread the OP, and, while it could be stated better, I did not see any obvious less told by Omega, except maybe less by omission.
From the OP:
I create a perfect simulation of you, and run it through a thousand simulated years of horrific torture (which will take my hypercomputer all of a billionth of a second to run), after which I delete the simulation and hand you a box with a billion dollars in it.
My interpretation of your interpretation, which you have said is basically right:
...And if Omega tells me that he has created n simulations of me which have completely equal experiences that I have had until now, including the dialogue with Omega, I should assume 1/n probability of no
I am an easily bored Omega-level being, and I want to play a game with you.
I am going to offer you two choices.
Choice 1: You spend the next thousand years in horrific torture, after which I restore your local universe to precisely the state it is in now (wiping your memory in the process), and hand you a box with a billion dollars in it.
Choice two: You spend the next thousand years in exquisite bliss, after which I restore your local universe to precisely the state it is in now (wiping your memory in the process), and hand you a box with an angry hornet's nest in it.
Which do you choose?
Now, you blink. I smile and inform you that you made your choice, and hand you your box. Which choice do you hope you made?
You object? Fine. Let's play another game.
I am going to offer you two choices.
Choice 1: I create a perfect simulation of you, and run it through a thousand simulated years of horrific torture (which will take my hypercomputer all of a billionth of a second to run), after which I delete the simulation and hand you a box with a billion dollars in it.
Choice 2: I create a perfect simulation of you, and run it through a thousand simulated years of exquisite bliss (which will take my hypercomputer all of a billionth of a second to run), after which I delete the simulation and hand you a box with an angry hornet's nest in it.
Which do you choose?
Now, I smile and inform you that I already made a perfect simulation of you and asked it that question. Which choice do you hope it made?
Let's expand on that. What if instead of creating one perfect simulation of you, I create 2^^^^3 perfect simulations of you? Which do you choose now?
What if instead of a thousand simulated years, I let the boxes run for 2^^^^3 simulated years each? Which do you choose now?
I have the box right here. Which do you hope you chose?