Also, presumably if you have AGI you can have it address a physical problem at a higher level of abstraction. "Design a device to make any water heater installable by a single person in 20 minutes" would result in a complex system that would make a lot of blue collar labor redundant (the last water heater I had installed took 3 guys over an hour to complete).

It would not even necessarily result in a human-like robot - just some device that can move the water heater around and assist with the process of disconnecting the old one and installing the new one.