Eh, it's not sure that we would be disgusting to such human-like AGI, many people like dogs, and some people even like things like snakes (I consider snakes to be disgusting animals, but that's not universal opinion).
Also, cost of living together with ugly, ill and useless person on a deserted island, would be high. Hopefully cost for AGI (cost needed to throw us ball of computronium) would be more comparable to feeding a stray cat (or even like keeping octopus alive when you are rich and own aquarium).
I would love if scenario like this story could happen, instead of the more likely thing, that is everybody dying.
Sure, human potential is permanently crippled. Still better than dying.
It needs to be mentioned that Prospera is still operating despite this fact, arguing about 50 years guaranteed by the legal stability agreement. The zone was not shut down in practice, the conflict about repeal is legal in nature, perhaps it may result in more court cases.