But settling a dispute requires compensation for the party that was damaged. That's what a settlement is.
You can't say "If you don't do A, B, and C you can't sue me! Nah nah nah!" Without compensation courts are not going to believe that anyone knowingly agreed to the settlement.
Now if they gave everyone like $5 and said "Sign here where it says you can't sue," that would be different.
Not really. There's no real way to manipulate other traders and they all use algorithms too. It's people monitoring algorithms doing most of the trading. At best, AI would be slightly faster at noticing patterns and send a note to a person who tweaks the algorithm.
People who don't invest forget: there has to be someone else on the other side of your trade willing to buy/sell. Like how do you think AI could manipulate housing prices? That's just stocks, but slower.