Rand in the fic was following her life philosophy to a T. She didn't build the city (at great personal expense) to create a place where people could be free from parasites, she created it to be a place where she could dominate every industry without repercussion. And viewing anyone who disagrees with you as being evil or stupid is the absolute core of "A=A".
"Most importantly: Rand HATED racism!" Really? because Ayn Rand had this to say about Native Americans:
"They didn’t have any rights to the land, and there was no reason for anyone to grant them rights which they had not conceived and were not using... What was it that they were fighting for, when they opposed white men on this continent? For their wish to continue a primitive existence, their "right" to keep part of the earth untouched, unused and not even as property, but just keep everybody out so that you will live practically like an animal, or a few caves above it. Any white person who brings the element of civilization has the right to take over this continent."
Note that this quote is not only racist, but it also encourages a might makes right argument were those with power are free to steal from those without power. This is absolutely the underpinnings of a dictators way of thinking.
Also, since objectivist philosophy defines morality as "the degree to which one's actions ensure one's continued survival" it literally turns Moral Myopia into a virtue.
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Only Aware Of Half The Philosophy
"I swear, by my life and my love of it, that I will never live for the sake of another man, nor ask another man to live for mine."
Critics of Objectivism never seem to remember the last part of the oath that sums up the whole philosophy. For example, killing a worker for dropping a crate violates the core of Objectivism, by treating the worker as if they ought to live for you. This story criticizes a tyrannical, totalitarian-type of government... but a tyrannical totalitarian government is inherently non-Objectivist. Objectivists only crave Independence, not Power. The Fountainhead calls "the man who goes after power" the "worst" type of human being. If Rand really did crave power like the author portrays her, she wasn't an Objectivist, but I think if the author was aware of the Objectivist condemnation of Lust For Power, it would've been mentioned in the story - someone would've reminded Rand how Galt turned down Mr. Thompson's offer to become "economic dictator," or how Gail Wynand's lifelong quest for power blew up in his face. The lack of anyone pointing out how the Rand of the story violates the philosophy of Objectivism - that she has, in fact, become something of a clone of Ivy Starnes - tells me the author has not read her work enough to understand said philosophy.
Objectivists believe what others do is none of their business, that what others do that does not affect them, well, does not affect them. If a doctor wants to help someone for free, that's his choice, and he's free to - Objectivism condemns forcing any doctor to do this. If men want to play a team sport, that's their choice, and they're free to - their action doesn't obligate those who don't wish to join them to join them. Objectivists would never be interested in what other people do with their skills and money because they know they should not feel entitled to others' skills or money in any way unless they pay for it. Killing a doctor for treating a man for free is demanding that doctor live for you.
Most importantly: Rand HATED racism! And Atlas Shrugged condemns promiscuity and sex without love and a deep, emotional connection.
The utopian section of Atlas Shrugged is indeed unrealistic, but this story is entirely clueless of what it's criticizing. Maybe the author was trying to imitate Lois Cook.