Allow me to answer to each point:
First, I would like to point out that using AI to replace the government is a gradual process that will not happen overnight.

1. while it is true, it is also true that often politicians will put their own self interests over ethic and empathy, an AI does not have ulterior motives and while it wouldn't be perfect all the time, it would still be a better alternative.

2. As AI will make more mistakes due to lack of knowledge, new knowledge could be filled in, additionally an AI can hold a lot more information than a human is known to hold, especially one that doesn't have the time to learn.

3. Yes, however with proper mechanisms in place the consequences could be avoided.

4. I would personally prefer an AI that will be harder (but still possible!) to understand than a human who has ulterior motives 


another point I have to make - AI have the massive advantage of being able to work in parallel.
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