Summary: the problem with Pascal's Mugging arguments is that, intuitively, some probabilities are just too small to care about. There might be a principled reason for ignoring some probabilities, namely that they violate an implicit assumption behind expected utility theory. This suggests a possible approach for formally defining a "probability small enough to ignore", though there's still a bit of arbitrariness in it.
We can replace Continuity with the Archimedean property (or, 'You would accept some chance of a bad outcome from crossing the street.') By my reading, this ELU idea trivially follows Archimedes by ignoring the part of a compound 'lottery' that involves a sufficiently small probability. In which case it would violate Independence, and would do so by treating the two sides as effectively equal when the differing outcomes have small enough probability.