This does not preclude an intelligence explosion, this cap could be many (say, 100) times higher than human intelligence. We could still see many features of an explosion in that case.
Building a dyson swarm would be a massive project, but modern humans are plenty smart enough to do it. An AI capable of running the project, while beyond the current state of the art, would still not need to be particularly clever. (It doesn't need to design satellites or space factories to get there.)
Wait, does that really follow? What if you have a better than linear bootstrapping compiler. To unpack that a bit, imagine we not only have $n$ such units, but we have them wired to together in a creative way-- i dont know whether it is hierarchy, or some clever topology, but lets say that the bootstrapper now gets sub-linear scaling properties as it grows $n$.
If we look at the brain, there is a lot to be understood from the dynamics of recurrent neural fields. They are wired in a very complex way which seems to allow for some kind of very special booting (re-booting) operations. And thats just at one level of abstraction, then we re-wire them into meta-fields (like the columnar abstractions that Hawkin's builds his HTM theories around). If we have a sort of fractal information encoding, we ultimately approach shannon efficient coding. Is that what evolution has selected brains to do? And do you think it is possible the first seed AI may realize this and exploit the same strategy, just 1000x (10kx?) faster?
If we use brain size as a rough proxy, ours is only three times as large as a chimp's but our capabilities for creation and destruction are vastly greater both in degree and range.
[1] IQ indicates the location in the distribution of intelligence within human population and it is flawed in many ways. The concept does not really apply to other beings.
If one accepts the plausibility of AGI, then AGI that is bigger and faster than humans does not seem to be much of a stretch, but I certainly cannot imagine what capabilities a qualitatively more powerful intelligence would have, let alone how much effort would be required to get there.
Chollet claims that more powerful intelligence is, in fact, impossible, but as Scott Aaronson pointed out [1], his argument from the No Free Lunch theorem does not have any bearing on the question. As Yudkowsky points out in the article, Chollet's other arguments could just as well be used to claim that nothing beyond the level of intelligence of chimpanzees is possible.
But maybe just a bigger, faster, human-like intelligence might present a risk - people have been outsmarting one another for millennia.
Also, it didn't seem to me like Chollet was claiming that better than human intelligence was impossible, honestly. This seems to be a motivated misreading of the original article on Yudkowksy's part, and most of his article is arguing with a straw man because of it. More charitably, Chollet seems to be saying that there may be limitations to intelligence that are "built in" due to the context in which intelligence operates. For instance, even if we create a "superintelligence" in the sense that it has much greater raw processing power than humans, we may not be able to create the sensory environment and training program that would allow it to learn how to recursively improve itself without limit.