I don't see what is unrealistic about that.
The major players already have strong incentives to freeze AI advancements at the the current state, while the technology is highly efficient for totalitarian surveillance systems that can eliminate any threat to their power in the buds, but still not so advanced that it could create crises that might endanger their power.
So I think the situation where several largest countries declare AI a deadly threat for humanity and start fighting it development much like they fight ISIS to be quite plausible.
This isn't a prisoner's dilemma; the distribution of risks and rewards is entirely different. Ban AI research, give away advanced models, bomb a couple of Russian datacenters where they launching those models unsafely, and then AI development will stop in the entire world.
That is completely irrational.
The threat is distributed; the problem is systemic. Social herd behavior is very real, and it's a probability space, not a certainty.
Similar case: climate change is without any question causing millions of deaths per year and may well kill billions, not to mention destroying ecosystems, and how may people do you know who have given up eating beef or flying...?
"Fossil fuel lobbyists flood COP30 climate talks in Brazil, with largest ever attendance share" https://kickbigpollutersout.org/Release-Kick-Out-The-Suits-C...
It is WERY questionable statement.
> and how may people do you know who have given up eating beef or flying
That is exactly because absolute majority of people do not think climate change to be that big of a problem