That strategy might work as deterrence, although actually implementing it would still be ethically...suboptimal, as you would still need to harm simulated observers. Sure, they would be Rogue AIs instead of poor innocent humans, but in the end, you would be doing something rather similar to what you blame them for in the first place: creating intelligent observers with the explicit purpose of punishing them if they act the wrong way.
That strategy might work as deterrence, although actually implementing it would still be ethically...suboptimal, as you would still need to harm simulated observers. Sure, they would be Rogue AIs instead of poor innocent humans, but in the end, you would be doing something rather similar to what you blame them for in the first place: creating intelligent observers with the explicit purpose of punishing them if they act the wrong way.