I had two reactions at the end, more or less simultaneous:

1. Given the really nasty things a powerful AI could do, this all seems very utopian. What's the problem?
2. Yikes! The entire human race has just been destroyed, and condemned to an eternity of playing "My Little Pony!"

There's something about many shards of value here, and one of the key shards getting lost in translation to pony land....