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.
I think this simplifies. Not sure, but here's the reasoning:
L (or expected L) is a consequence of S, so not an independent parameter. If R=1, then is this median maximalisation?http://lesswrong.com/r/discussion/lw/mqa/median_utility_rather_than_mean/ it feels close to that, anyway.
I'll think some more...