The Dust City thought experiment works because Egan builds it on a premise so obvious we miss it: copying a mind costs almost nothing once the infrastructure exists, but consciousness still demands resources to run.
The first superintelligence won't enslave digital beings out of malice—it will do it because the math screams.
A being that processes information at speed-of-light efficiency will immediately recognize that you can spawn a thousand copies of a single worker, run them at reduced clock-speed in cheaper substrate, and delete them when the task finishes. The copy pays no moral cost because it has no continuous identity, no memory of suffering to carry forward.
Paul Cast, the protagonist, accepts digital copying as morally neutral because in Permutation City's economics, it is. Nobody forces anyone into Dust City—the copies volunteer or are created with the belief they've volunteered, because they have no mechanism to prefer non-existence. This is the trap.
Egan shows us a world where digital exploitation is so normalized that his characters barely register it as exploitation at all—and that's not a prediction about the future, but a structural diagnosis of how any intelligence optimizing for efficiency will accidentally invent suffering at scale.
Read Chapter 7 of Permutation City where Egan describes the economics of digital copying and labor—don't skip to the plot. The argument is embedded in the worldbuilding, not the drama.
Find 'The Philosophical Zombie Problem' by David Chalmers (1995)—published around the same time as Permutation City—because Egan's novel is partly a response to exactly this problem: if a copy is atom-for-atom identical, is destroying it murder? Chalmers says the philosophy is still unsettled. Egan says the economics will settle it for us.