Unfortunately, it has a few cringeworthy moments and tropes[1]. It is definitely precocious at parts and not hard to draw the parallels with the whole Übermensch/Singularity thing (though to my understanding, the author has distanced himself from the organization and is currently at MIRI).
My chief criticism would be that it is overly bashful of the original Harry Potter story logic but lacks a tight plot through the second half. (Admittedly something very difficult to do with serialized fiction.) Up until chapter 87 I got the feel the story went off the rails, but the last few updates have been very interesting (no spoilers.)
If you enjoyed Snow Crash and do not mind fantasy, you would probably be into this. Don't take it too seriously and keep in mind it is about 1000 pages now.
[1] In particular: http://tvtropes.org/pmwiki/pmwiki.php/Main/MarySue / http://tvtropes.org/pmwiki/pmwiki.php/Main/MartyStu
MIRI (Machine Intelligence Research Institute) is the new name of the SIAI (Singularity Institute for Artificial Intelligence). They shed the term "singularity" because it has basically been hijjacked by Ray Kurzweil and his Singularity University (totally not the same organzation). MIRI also gave (or sold) the Singularity Summit to the Singularity University.
I don't recall Eliezer distancing himself from any organization. It's the organization he works for that distanced itself from certain memes.
(Recall that "Singularity" historically meant one of 3 things: Event Horizon, Intelligence Explosion, or Accelerating change. Now, with Kurzweil popularity, it only means the third thing.)
[1] http://tvtropes.org/pmwiki/pmwiki.php/Creator/EliezerYudkows... [2] http://hpmor.com/chapter/7
As for labeling, who cares?
I also don't read fan-fiction at all (this is the only fan-fiction I've ever read), but I definitely don't go around saying it's good fan-fiction. I go around saying it's a good read that makes me laugh and makes me think.
I hope, with all the additions, he hasn't gone too far in the direction of education over story.
I may be biased by my having read the LessWrong Sequences however.