My solution to the alignment problem is that an ASI could just stick us in tubes deep in the Earth’s crust—it just needs to hijack our nervous system to input signals from the simulation. The ASI could have the whole rest of the planet, or it could move us to some far off moon in the outer solar system—I don’t care. It just needs to do two things for it’s creators—preserve lives and optimize for long term human experience.
Again, you’re not experiencing a mundane or perfect world. It would be like being in a video game or movie, if you wanted. Some people would experience the plot of The Matrix as any of the characters. Or you could travel around the galaxy solving mysteries and fighting evil as a Jedi Master. Or you could spend some time living a quiet pastoral life in the Shire with your hobbit friends. Or you could do it all over and over again experiencing the highs and lows each time.