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matheist comments on The Problem with AIXI - Less Wrong
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If you limit the domain of your utility function to a sensory channel, you have already lost; you are forced into a choice between a utility function that is wrong, or a utility function with a second induction system hidden inside it. This is definitely unrecoverable.
However, I see no reason for Solomonoff-inspired agents to be structured that way. If the utility function's domain is a world-model instead, then it can find itself in that world-model and the self-modeling problem vanishes immediately, leaving only the hard but philosophically-valid problem of defining the utility function we want.
There's also the problem of actually building such a thing.
edit: I should add, the problem of building this particular thing is above and beyond the already difficult problem of building any AGI, let alone a friendly one: how do you make a thing's utility function correspond to the world and not to its perceptions? All it has immediately available to it is perception.