Absolutely, I agree of course. If a line of inquiry is interesting in itself and a progress is being made, why not pursue it? My question was only about its direct relevance to FAI. Or, rather, whether the arguments that I made to myself about its non-relevance can be easily refuted.
And, you know, questioning of assumptions can sometimes be useful too. From a false assumption anything follows :)
In any case, I'm glad to be of service, however small. Your posts are generally excellent.
Some people on LW have expressed interest in what's happening on the decision-theory-workshop mailing list. Here's an example of the kind of work we're trying to do there.
In April 2010 Gary Drescher proposed the "Agent simulates predictor" problem, or ASP, that shows how agents with lots of computational power sometimes fare worse than agents with limited resources. I'm posting it here with his permission:
About a month ago I came up with a way to formalize the problem, along the lines of my other formalizations:
Also Wei Dai has a tentative new decision theory that solves the problem, but this margin (and my brain) is too small to contain it :-)
Can LW generate the kind of insights needed to make progress on problems like ASP? Or should we keep working as a small clique?