I guess my main objection is how the "value being in the true world" conflicting with other values is portrayed. Celestia sides against valuing a true world, and this theme is covered in Light Spark's story, but would becomes explicit if there were direct conflicts. In the end, what Celestia does is just very sophisticated networked wireheading.

In my mind, this means Hanna failed, but it doesn't seem quite portrayed as a failure. There is a hint of the horror as she consumes galaxies and tiles the universe with wireheaded ponies, but just a hint. It's more subtle than I prefer. Specifically, I'm worried that someone reading it without LessWrong background would miss all that.

(Also, I just assumed the block function is a dummy button and doesn't actually do anything when you press it.)