The hate that the Dark Lord Potter forum has on MoR is getting more than a bit amusing.
Also, perhaps it's me, but I see the story as a thinly veiled commercial for the author's blog/institute, which breaks the "doing this for pleasure and not profit" fanfiction model (as well as being a subtext that breaks the fourth wall for several readers). The author is almost certainly deriving commercial benefit from J. K. Rowling's intellectual property and his exploitation of the popularity of her fandom by routing eyeballs to his site and building his own personal fame as a voice in the field of AI. I wouldn't be surprised if his story has bumped traffic to his blog/website by an order of magnitude or two. In many regards, this practice is worse than a Cassandra Clare or Jim Bernheimer pitching their original fiction novels on their fanfiction sites, since neither author makes a living off their writing.
This story isn't parody in the traditional sense, so it's possible that a court would consider it as not falling within this protected class of derivative works. Indeed, if the legal hammer were to fall on this story, it could have fallout: consider that a single CAD letter, if sufficiently broad in scope, to the owners of fanfiction.net could effectively shut down the fandom.
As Louie commented upon hearing this: "I just love the fountains of money that have been bursting through [SIAI]'s doors ever since the beginning of this fic". Not.
That thread is an interesting read. Fun to see people taking this so seriously.
Personally I just like that it is educational material presented in a fun to read fashion that pokes fun at a rather silly story / fictional universe that has been forced upon us all by the engines of cultural osmosis. I have no problem with HP used as a cheap mnemonic device to memorize and illustrate a set of concepts that everyone should know but most people don't. I also don't have a problem with using it as a cheap advertising gimmick to get people to pay attention to matte...
Update: Please post new comments in the latest HPMOR discussion thread, now in the discussion section, since this thread and its first few successors have grown unwieldy (direct links: two, three, four, five, six, seven).
As many of you already know, Eliezer Yudkowsky is writing a Harry Potter fanfic, Harry Potter and the Methods of Rationality, starring a rationalist Harry Potter with ambitions to transform the world by bringing the rationalist/scientific method to magic. But of course a more powerful Potter requires a more challenging wizarding world, and ... well, you can see for yourself how that plays out.
This thread is for discussion of anything related to the story, including insights, confusions, questions, speculation, jokes, discussion of rationality issues raised in the story, attempts at fanfic spinoffs, comments about related fanfictions, and meta-discussion about the fact that Eliezer Yudkowsky is writing Harry Potter fan-fiction (presumably as a means of raising the sanity waterline).
I'm making this a top-level post to create a centralized location for that discussion, since I'm guessing people have things to say (I know I do) and there isn't a great place to put them. fanfiction.net has a different set of users (plus no threading or karma), the main discussion here has been in an old open thread which has petered out and is already near the unwieldy size that would call for a top-level post, and we've had discussions come up in a few other places. So let's have that discussion here.
Comments here will obviously be full of spoilers, and I don't think it makes sense to rot13 the whole thread, so consider this a spoiler warning: this thread contains unrot13'd spoilers for Harry Potter and the Methods of Rationality up to the current chapter and for the original Harry Potter series. Please continue to use rot13 for spoilers to other works of fiction, or if you have insider knowledge of future chapters of Harry Potter and the Methods of Rationality.
A suggestion: mention at the top of your comment which chapter you're commenting on, or what chapter you're up to, so that people can understand the context of your comment even after more chapters have been posted. This can also help people avoid reading spoilers for a new chapter before they realize that there is a new chapter.