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lessdazed comments on Intuitive Explanation of Solomonoff Induction - Less Wrong
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It was meant as a draft of an alternative, based on my limited understanding. I see two thresholds where I think you see one. The recipe is uncomputable, so it would take longer than "long after the heat death of the universe" or any other finite amount of time to finish. Also, the computable functions most similar to it would take more steps than there is time to do.
Yes, approximations of Solomonoff Induction need to be not just computable but also tractable.
It's a good sign our understandings match, but consider that after simply reading the explanation I thought you meant something other than what you did.