My biggest problem is more that he talks about it, sometimes in semiofficial channels. This doesn't mean that I wouldn't be squicked out if I learned about it, but I wouldn't see it as a political problem for the SIAI.
The SIAI isn't some random research think tank: it presents itself as the charity with the highest utility per marginal dollar. Likewise, Eliezer Yudkowsky isn't some random anonymous researcher: he is the public face of the SIAI. His actions and public behavior reflect on the SIAI whether or not it's fair, and everyone involved should have already had that as a strongly held prior.
If people ignore lesswrong or don't donate to the SIAI because they're filtered out by squickish feelings, then this is less resources for the SIAI's mission in return for inconsequential short term gains realized mostly by SIAI insiders. Compound this that talking about the singularity already triggers some people's absurdity bias; there needs to be as few other filters as possible to maximize usable resources that the SIAI has to maximize the chance of positive singularity outcomes.
It seems there are two problems: you trust SIAI less, and you worry that others will trust it less. I understand the reason for the second worry, but not the first. Is it that you worry your investment will become worth less because others won't want to fund SIAI?
Faith, Hope, and Singularity: Entering the Matrix with New York’s Futurist Set
To my knowledge LessWrong hasn't received a great deal of media coverage. So, I was surprised when I came across an article via a Facebook friend which also appeared on the cover of the New York Observer today. However, I was disappointed upon reading it, as I don't think it is an accurate reflection of the community. It certainly doesn't reflect my experience with the LW communities in Toronto and Waterloo.
I thought it would be interesting to see what the broader LessWrong community thought about this article. I think it would make for a good discussion.
Possible conversation topics:
Edit 1: Added some clarification about my view on the article.
Edit 2: Re-added link using “nofollow” attribute.