It's true that humans do not have utility functions, but I think it still can make sense to try to fit a utility function to a human that approximates what they want as well as possible, since non-VNM preferences aren't really coherent. It's a good point that it is pretty worrying that the best VNM approximation to human preferences might not fit them all that closely though.
a bounded function that behaves in a similar way by approaching a limit (if it didn't behave similarly it would not treat anything as having infinite value.)
Not sure what you mean by this. Bounded utility functions do not treat anything as having infinite value.
It's true that humans do not have utility functions
Do not have full conscious access to their utility function? Yes. Have an ugly, constantly changing utility function since we don't guard our values against temporal variance? Yes. Whose values cannot with perfect fidelity be described by a utility function in a pragmatic sense, say with a group of humans attempting to do so? Yes.
Whose actual utility function cannot be approximately described, with some bounded error term epsilon? No. Whose goals cannot in principle be expressed by a utility function? No.
Edge.org has recently been discussing "the myth of AI". Unfortunately, although Superintelligence is cited in the opening, most of the participants don't seem to have looked into Bostrom's arguments. (Luke has written a brief response to some of the misunderstandings Pinker and others exhibit.) The most interesting comment is Stuart Russell's, at the very bottom:
I'd quibble with a point or two, but this strikes me as an extraordinarily good introduction to the issue. I hope it gets reposted somewhere it can stand on its own.
Russell has previously written on this topic in Artificial Intelligence: A Modern Approach and the essays "The long-term future of AI," "Transcending complacency on superintelligent machines," and "An AI researcher enjoys watching his own execution." He's also been interviewed by GiveWell.