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Vladimir_Nesov comments on Open Thread, August 2010-- part 2 - Less Wrong
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It seems to be an argument against possibility of making any decision, and hence not a valid argument about this particular decision. Under the same assumptions, you could in principle formalize any situation in this way. (The problem boils down to uncomputability of universal prior itself.)
Besides, not making the decision is not an option, so you have to fall down to some default decision when you don't know how to choose, but where does this default come from?
I take it as an argument against making perfect decisions. If perfection is uncomputable, then any computable agent is not perfect in some way.
The question is what imperfection do we want our agent to have? This might be the deep justification for choosing to scale probability by utility that I was looking for. Scaling linearly corresponds to being willing to lose a fixed amount to mugging, scaling superlinearly correspond to not willing to lose any genuine offer, scaling sublinearly corresponds to not being willing to ever be fooled. Or something like that. The details need some work.