Ultimately I think this leads to the necessity of very strong global monitoring, including breaking all encryption, to prevent hostile AGI behavior.

This may be the case but I think there are other possible solutions and propose some early ideas of what they might look like in: https://www.lesswrong.com/posts/5nfHFRC4RZ6S2zQyb/risks-from-gpt-4-byproduct-of-recursively-optimizing-ais

I can't convince you to continue or stop, but maybe reading the edit I made to the start of the post will better clarify the risks for you.

1. I agree, it isn't the worst heuristic ever. But at the end of the day is still a heuristic.
2. Yes, you're right. I tried to phrase things kindly but perhaps I didn't go far enough. Made some edits :)