Ok. Sorry for being non-constructive.
Perhaps the OP question is best framed as "how does the political/government situation change as a result of ems, and what could be done in the domain of government to ensure effective and valuable government", then go a bit more cautiously into "here's some things that people like about democracy" and "here are some other proposals (like em-dictator modified to be non-power grabbing, em dictator unaware of ability to grab power, etc)"
Many (good) things become possible when you can sandbox, copy, and so on that were inconceivable when the problem was how to get wealthy landowners to agree to pay taxes...
I tend to favor the AI-singleton as fast as possible solution to sidestep these issues, but I'll try to actually think about it as well.
One person, one vote - a fundamental principle of our democratic government. But what happens in a world where one person can be copied, again and again?
That is the world described by Robin Hanson's "Em economics". Ems, or uploads, are human minds instantiated inside software, and hence can be copied as needed. But what is the fate of democratic government in such a world of copies? Can it be preserved? Should it be preserved? How much of it should be preserved? Those are the questions we'll be analysing at the FHI, but we first wanted to turn to Less Wrong to see the ideas and comments you might have on this. Original thoughts especially welcome!
To start the conversation, here are some of the features of idealised democracy (the list isn't meant to be exhaustive or restrictive, or necessarily true about real world democracies). Which of these could exist in an Em world, and which should?
EDIT: For clarification purposes, I am not claiming that democracies achieve these goals, or that these are all desirable. They are just ideas to start thinking about.