Earlier quoted context omitted.
Broken in the sense that it's not flexible enough to apply to all conceivable environments a genuine AGI could navigate, without misleading that AGI. But I should stress that real number objective functions are probably fine for many specific interesting environments, I'm not trying to say that real number objective functions are useless. Just that they aren't flexible enough to cover all environments :)
Fair enough. It would be interesting/instructive to construct (relatively simple) examples where we can see that they’re broken :-)
Easy to come up with examples using exotic money-related constructions. Suppose there's something called a "superdollar". If you have a superdollar, you can use it to create an arbitrary number of dollars for yourself, any time you want, which you can trade for goods and services. If you want, you can also trade the superdollar itself. Now picture an environment with two buttons, one of which always rewards you one dollar, and the other of which always rewards you one superdollar. Shoe-horning this environment into traditional RL, you'd have to assign the superdollar button some finite reward, say a million. But then you would mislead the traditional-RL-agent into thinking a million dollars was as good as one superdollar, which clearly is not true.