I understand what steven0461 said. I get the idea too, I just think it's wrong. I've tried to explain why it's wrong numerous times, but I've clearly failed, and don't see myself making much further progress.
In lieu of further failed attempts to explain myself, I'm lodging a gratuitous appeal to Nobel Laureate authority, leaving some further references, and bowing out.
The following quote from Amartya Sen (1979) pretty much sums up my position (in the context of a similar debate between him and Harsanyi about the meaning of Harsanyi's supposed axiomatic proof of utilitarianism).
[I]t is possible to define individual utilities in such a way that the only way of aggregating them is by summation. By confining his attention to utilities defined in that way, John Harsanyi has denied the credibility of "nonlinear social welfare functions." That denial holds perfectly well for the utility measures to which Harsanyi confines his attention, but has no general validity outside that limited framework. Thus, sum-ranking remains an open issue to be discussed in terms of its moral merits-and in particular, our concern for equality of utilities-and cannot be "thrust upon" us on grounds of consistency.
Further refs, if anyone's interested:
Parts of the Hintikka and Butts volume are available in Google Books.
(I'll put these in the Harsanyi thread above as well.)
I said this in a comment on Real-life entropic weirdness, but it's getting off-topic there, so I'm posting it here.
My original writeup was confusing, because I used some non-standard terminology, and because I wasn't familiar with the crucial theorem. We cleared up the terminological confusion (thanks esp. to conchis and Vladimir Nesov), but the question remains. I rewrote the title yet again, and have here a restatement that I hope is clearer.
Some problems with average utilitarianism from the Stanford Encyclopedia of Philosophy:
(If you assign different weights to the utilities of different people, we could probably get the same result by considering a person with weight W to be equivalent to W copies of a person with weight 1.)