Morality is an evolved adaptation. The ultimate purpose of morality is to maximize your own utility. There is no reason why any human being would care about a bunch of crystalline insect-like aliens. Practically, human empathy circuits would never span to such alien aliens considering how easy it is to turn it off for other humans whom we consider to be an out-group. From a game theoretical perspective there is no utility gained from sacrificing humans so that some crystal bugs conform to our social values. The correct move from a game theoretic perspective is to ally with the Babyeaters since they are friendly and could be of use in trade.

This is going to sound like an ad hominem attack, but it seems to me that a majority of the singularity/futurist crowd are more concerned with impressing others with shows of intelligence than any other goal. They sound more like a bunch of male apes strutting around vying for alpha status, perhaps not surprising given that they are almost all male. A comment very much like mine (about the pointlessness of feeling compassion for crystal bugs) was posted on the overcoming bias blog but it received no replies/rebuttals. Rather the comments over there simply accepted the premises of the story without question. I have a great deal of respect for Elizer but his followers are frighteningly cult like.