Earlier quoted context omitted.
Actually, the original paper is this one: http://www.pnas.org/content/early/2012/05/16/1206569109.full... Here is an description of the result and its implications http://golem.ph.utexas.edu/category/2012/07/zerodeterminant_...
Wow. Not long ago I was trying to test whether an idea for a certain kind of online interaction would work out the way I hoped. I built a simulation with agents that evolved their strategies, trying to optimize their own outcomes. Maybe that's not such a good test after all.
In other words, for this strategy to work it needs "pragmatic" other players that are (a) intelligent enough to know what the other player is doing and (b) willing to accept the unequal outcome. This strategy isn't symmetric: if you turned two of these bots against each other the total outcome would be much worse than if two TFT bots played each other.
Thus it stands to reason that TFT or some small variant is still the evolutionary winner.