I dunno. I’d be pretty happy with a system that produced reasonable output when staffed with idiots, because that seems like a certainty. I actually think that’s probably why democracy seems to be better than monarchies—it has a much lower requirement for smarts/benevolence. “Without suffering” may be a high bar, but the universe is allowed to give us problems like that! (And I don’t think that democracy is even close to a complete solution.)
EDIT: Also, perhaps the entirety of the system should be to make sure that an “utter genius with leet rationality skillz” is in the top position? I’d be very happy with a system that caused that even when staffed by morons.
I think you’re getting downvoted for your TL;DR, which is extremely difficult to parse. May I suggest:
TL;DR: Treating “computers running minds” as discrete objects might cause a paradox in probability calculations that involve self-location.