I posted elsewhere that this post made me think you're anthropomorphizing; here's my attempt to explain why.

egregiously incoherent behavior in ONE domain (e.g., the Dopamine Drip scenario)

the craziness of its own behavior (vis-a-vis the Dopamine Drip idea)

if an AI cannot even understand that "Make humans happy" implies that humans get some say in the matter

Ok, so let's say the AI can parse natural language, and we tell it, "Make humans happy." What happens? Well, it parses the instruction and decides to implement a Dopamine Drip setup.

As FeepingCreature pointed out, that solution would in fact make people happy; it's hardly inconsistent or crazy. The AI could certainly predict that people wouldn't approve, but it would still go ahead. To paraphrase the article, the AI simply doesn't care about your quibbles and concerns.

For instance:

people might consider happiness to be something that they do not actually want too much of

Yes, but the AI was told, "make humans happy." Not, "give humans what they actually want."

people might be allowed to be uncertain or changeable in their attitude to happiness

Yes, but the AI was told, "make humans happy." Not, "allow humans to figure things out for themselves."

subtleties implicit in that massive fraction of human literature that is devoted to the contradictions buried in our notions of human happiness

Yes, but blah blah blah.

Actually, that last one makes a point that you probably should have focused on more. Let's reconfigure the AI in light of this.

The revised AI doesn't just have natural language parsing; it's read all available literature and constructed for itself a detailed and hopefully accurate picture of what people tend to mean by words (especially words like "happy"). And as a bonus, it's done this without turning the Earth into computronium!

This certainly seems better than the "literal genie" version. And this time we'll be clever enough to tell it, "give humans what they actually want." What does this version do?

My answer: who knows? We've given it a deliberately vague goal statement (even more vague than the last one), we've given it lots of admittedly contradictory literature, and we've given it plenty of time to self-modify before giving it the goal of self-modifying to be Friendly.

Maybe it'll still go for the Dopamine Drip scenario, only for more subtle reasons. Maybe it's removed the code that makes it follow commands, so the only thing it does is add the quote "give humans what they actually want" to its literature database.

As I said, who knows?

Now to wrap up:

You say things like "'Make humans happy' implies that..." and "subtleties implicit in..." You seem to think these implications are simple, but they really aren't. They really, really aren't.

This is why I say you're anthropomorphizing. You're not actually considering the full details of these "obvious" implications. You're just putting yourself in the AI's place, asking yourself what you would do, and then assuming that the AI would do the same.