There's other means for such an entity to arrive at the same outcome. Humans enjoy doing it. The entity won't.

Even if this particular scenario is relevant, it could invent it all, no need to do it to some real human.

But again, this is just human silliness. Dictator entity merely implies it has the power to do what it takes to ensure a decent quality of life of everyone. Even of the "rebels".

Arguing for "the rebels" is like arguing for the 5 year old's perspective against the group's elder wise council. By definition the entity (council) knows best, by far, what's good for everyone.