I think the simpler solution is just to use a bounded utility function. There are several things suggesting we do >this, and I really don't see any reason to not do so, instead of going through contortions to make unbounded >utility work.

But that's essentially already the case. Just consider the bound to be 3^^^^3 utilons, or even an illimited number of them. Those are not infinite, but still allow all the situations and arguments made above.

Paradoxes of infinity weren't the issue in this case.