While that's technically a valid potential future, it's unrealistic just because society would tear itself apart long before it reached that limit state.
I don't think it's that unrealistic. The trick will be, not going too fast, managing a few separate transitions, and making sure capital maintains control of the institutions with the monopoly on the use of force. The masses don't tend to act to project their interests until it's too late.
The masses are already showing signs of restlessness, and the only real problem right now is wealth inequality. Actual unemployment rates remain low. Forward in time a little, let's say 20% unemployment due to AI. The only way anybody is going to maintain their monopoly on use of force is if they hire every one of those 20% to be police. Right now the ratio of police to citizens is really low, and the ratio of weapons to civilians really high. I don't think the masses will wait all that long.
> The masses are already showing signs of restlessness
IMHO, "restlessness" doesn't mean anything. It would be expected in a AI-driven usurpation of labor. People have already been restless for decades due to de-industrialization, and that mainly got us Trump and an opioids, but the factories are still gone.
The key to fucking over the masses is making sure the "restlessness" doesn't get too strong, and doesn't have a clear (and correct!) villain identified, and maintaining a sense of inevitability.
> I don't think the masses will wait all that long.
IMHO, they probably will. Any individual or small group who takes action will be pilloried as wackos and thrown in jail. A larger movement will be (rightly) characterized as an insurrection and dealt with harshly.
People are complacent, and often don't realize they're really losing something until it's already slipped from their fingers.
I also think the Western world lacks the ideological tools to stop technologies like this. They'd basically have to start looking at technology like Amish do: rejecting technology that would undermine their social structure, rather than expecting the social structure to adapt to the technology.