I think what you're missing is if you have a "a near magical genie who can make [you] anything" you don't need to exchange for anything.

And if your "near magical genie" can make an operate military equipment, you don't have to respect existing authorities anymore.

Basically, the "AI maximalism" scenario kicks the legs out from under all these concepts and social institutions you're relying on.

> Most of the developed world already has magical genies - certainly an overwhelming majority of people on HN earn enough to have LLM subs that build code, 3D Printers that print physical things.

Not like in the scenario we're discussing. Whatever "magical genies" we already have are incomplete and need operators or have serious quality problems. Most of us depend on those limitations for our livelihoods, and those limitations also give levers to control them.

> You just cannot live in a vacuum. If you could subsist entirely on cheetos and figured out how to make an entire lifetime's supply of cheetos, after N days of watching Netflix, arguing on HN, raising chickens and goats, one day you will want to go and talk to a human.

An oligarch with the "near magical genie" could easily build a town of 5,000 to satisfy his needs to "talk to a human."