Vladimir_Nesov comments on Some Thoughts Are Too Dangerous For Brains to Think - Less Wrong
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You don't update values, you update knowledge about values. Knowledge about terminal values might be as incomplete as knowledge about instrumental values. The difference is that with instrumental values, you usually update indifference, while with "terminal" values you start out with some idea of preference.
What about newborns? If they have same terminal values as adults, then Kolmogorov complexity of terminal values should not exceed one of genome. Thus a) terminal values are updated or b) terminal values are not very complex or c) knowledge about terminal values is part of terminal values, which imply a).