I read the union essay a while ago, but your failure to sufficiently consider risk-aversion in this one was a major hole. I don't mean to really criticize that much, you write consistently great stuff.
That works, except then I guess the hole was not making it clear enough that you were talking about utility rather than expected value. The problem with your response, and the reason that I don't really see it as a good explanation, is that your basic principle is far less useful if it requires the user to calculate their expected utility.
