Question
If Krishna is the Supreme Subject and the living entities His objects, we can deduce that the living entities are means to Krishna’s ends. In the field of ethics, instrumentalism is generally considered a symptom of dominance and oppression. However, because the living entity’s natural position is instrumental to Krishna, the greatest amount of happiness is obtained when one surrenders to our original position. I find it difficult to accept such a minor role.
Answer

Wrong logic. We are also subjects, and actually Krishna respects and honors us more than we respect and honor ourselves. We create our own mess, as Krishna says in the Bhagavad-gita verse 5.15. We are not mere instruments, we are full persons. Even Krishna does so much for us, He is constantly acting for our welfare. We should not confuse subjugation with love. In love, one chooses to act for the beloved.