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Wei_Dai comments on A Request for Open Problems - Less Wrong
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The idea of agents using UTM-based priors is a human invention, and therefore subject to human error. I'm not claiming to have an uncomputable brain, just that I've found such an error.
For a specific example of how human beings might deal with such scenarios, compared to agents using UTM-based priors, see "is induction unformalizable?".
The model of environment values observations and behaviors, not statements about "uncomputability" and such. No observation should be left out, declared impossible. If you, as a human, decide to trust in something you label "halting oracle", that's your decision, and this is a decision you'd want any trusted AI to carry through as well.
I suspect that the roots of this confusion are something not unlike mind projection fallacy, with magical properties attributed to models, but I'm not competent to discuss domain-specific aspects of this question.