It is essentially that, and it does show that trying to maximize expected utility can lead to such negative outcomes. Unfortunately, there doesn’t seem to be a simple alternative to maximizing expected utility that doesn’t lead to being a money pump. The kelly criterion is an excellent example of a decision-making strategy that doesn’t maximize expected utility but still wins compared to it, so at least it’s known that it can be done.
It is essentially that, and it does show that trying to maximize expected utility can lead to such negative outcomes. Unfortunately, there doesn’t seem to be a simple alternative to maximizing expected utility that doesn’t lead to being a money pump. The kelly criterion is an excellent example of a decision-making strategy that doesn’t maximize expected utility but still wins compared to it, so at least it’s known that it can be done.