If you knew that everyone got uploaded to a virtual world when they died, and the virtual world was better in every way than the natural world, and when you died you would be reunited with them in the virtual world, then would you really have something to grieve about when their soul passed out of their body?
You don't grieve because of what you said. You grieve because you miss them and you don't know when you will see them. I know it is selfish but its true. I attended a funeral once where the son of the deceased was a friend and "We are sad not because we would no longer see him, but because we do not know when.", Of course he maybe lying but sometimes we can take these people's statements at face value. Some people are short sighted, they are saddened inspite of their belief that they would be reunited and what they term the other side/life would be a far far better place. They are saddened because their lives have to change , maybe not for the better.
This is a really good question.
As others have pointed out, the real issue is not competence but perceived competence. But as others haven't really pointed out, as one deals with more perceptive rivals, the difference between competence and perceived competence approaches zero (if only asymptotically).
As for the last question---what should we do in a truel-like situation---the answer is, I guess, "That depends." If we're talking about a situation where one can falsify incompetence, or perhaps form an unbreakable contract to act incompetently, then the old chestnut applies: rational agents should win. In a literal truel, you could do this by, say, agreeing to fire roughly one-third of your shots (chosen by die roll) straight into the air, provided there were a way of holding you to it. In other cases, as some people pointed out, maybe you could just get really good at convincing people of your incompetence (a.k.a. "nonchalance").
But in a situation where this is impossible? Where competence and perceived competence are one? Then there is no strategy, any more than there was a strategy for passing as white in the last century. You will be punished for being good (unless you're so good that you win anyway).
Regarding the evolution of mediocrity: In some cases, Evolution selects for people who are good at convincing others that they are X, and, by a not-so-stunning coincidence, ends up with people who actually believe they are X, or even really are X. I don't know if "competence" is the sort of thing this works for, though, since it is in itself a genetic advantage almost by definition. Self-perceieved incompetence is just so much better a strategy than actual incompetence, and self-delusion such a commonly evolved trait, that I have trouble believing even a dolt like Evolution would fail to think of it.
Your reply made me connect this with "The Usual Suspects".
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I think this is very important we have a lot of people who are unsure and don't vote, this I think is a relevant information that must be taken account of.
If you don't want to see it, because you're worried the new perspective will screw you up, that's a legitimate fear.
But I feel like any drastic perspective change will screw me up, whether it be positive or negative. Why would someone make the choice to change their preferences (as opposed to optimize them)?
because preferences are malleable because the people who have them are. For me most moves toward rationality is a drastic perspective change. If you fear to change your preferences the slower you go anywhere great.
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I think that there is also the perceived friendliness that goes both ways.
+The author seeing audience helps in giving feedback. It is easy to leave out hard steps when you do not have to see the blank faces.
+The audience also benefits by increased communication through non-verbals signals. Such as cues in what parts are extremely important and the like.