Yudowsky: My problem with this view is I don't know when other people/entities are "making choices". Is my computer making a choice to follow my suggestion on which operating system to boot up each time it is switched on (some times it gets impatient and makes up its own mind!)? Is it a moral decision maker? If not, at what sophistication does it become so.

Lots of this has been covered by Dennett, although I am not quite sure how much of his philosophy you take on. E.g. are you a Realist (capital R) for beliefs?