The entire premise of Xyrik's scenario is that everything will be hunky-dory. Xyrik is just making a wish, and not thinking about how anything will actually work.

Well, to be fair, I never claimed that I had any ideas for how to actually achieve a scenario with a flawless AGI, and I don't think I even said I was under the impression that this would be a good idea, although in the case that we DID have a flawless AGI, I would be open to a reasoning that proclaimed so.

But all I was asking was what potential downsides this could have, and people have risen to the occasion.