I have no qualms about an investment not working out.

I don't even have a problem testing out the new risks presented by a DAO but I'm just trying to work out whether I need to consider the risk that what appears like a fair deal isn't all it seems. I just don't want to need to factor in an additional risk - collusion.

The only issue I have is that someone with enough resources (say USD2M) could effectively double their money by buying enough DAO tokens to take control.

So you could say the curators would manage that by preventing that from happening and that's a very comforting control unless the curators themselves have something to gain from allowing that vote to go through.

I guess you could say that in this instance, it's a conflict of interest the current curators have.