Its an interesting theoretical scenario, but I think the set up is unrealistic (far too clean cut, black and white). I can see what he's driving at, but it emphasizes risk far too strongly by making it an all or nothing scenario.

In addition, calling Allison's axiom tyrannical because of it makes assumptions on how she'd handle disagreement. Just because ideally everyone cooperates for the common good doesn't mean that you have to force everyone to work together.

Lastly... I have a problem with every single student having a white stone at the end of it. Come on, not everyone is that selfish.
And if everyone in SFP's world is that selfish, I think Gurwara just proved that benevolent tyranny isn't such a bad idea after all.