Is your suggestion to run this system as a source of value, simulating lives for their own sake rather than to improve the quality of life of sentient beings in our universe? Our history (and present) aren't exactly utopian, and I don't see any real reason to believe that slight variations on it would lead to anything happier.
I think we can expect to achieve a lot more than that from a properly aligned AGI. There is so much suffering that could be alleviated right now with proper coordination, as a lower bound on how much better it could be than just effectively running copies of our timeline but at lower resolution.
Is the "Going Beyond Agents" section part of CHAI's research agenda, or your take on further challenges from an embedded agency perspective?
In the example with Bob, surely the odds of Bob having a crush on you after winking (2:1) should be higher than a random person winking at you (given as 10:1), as we already have reason to suspect that Bob is more likely to have a crush on you than some random person not part of the six.