Eliezer, what do you have against "Excession"? It's been a while since I last read them, but I thought it was the 2nd best of the Culture books after "Use of Weapons". I do agree that "Player of Games" is the best place to start though (I started with Consider Phlebas but found it a little dry).

Anyway, as for your actual point, I think it sounds reasonable at least on the surface, but I think considering this stuff too deeply may be putting the cart ahead of the horse somewhat when we're not even very sure what causes consciousness in the first place, or what the details of its workings are, and therefore to what extent a non-conscious yet correctly working FAI is even possible or desirable.