That is, to the extent that B increases the probability of A, it does so by increasing the probability of A v B more than it decreases the probability of A v ~B. However, since A v B is a logical consequence of B to begin with, the increase in probability is a purely deductive inference.

But the decrease in probability of A v ~B is not "purely deductive" because ~(A v ~B) is not a logical consequence of B. So the net change in the probability of A is not entirely deductive.

EDIT: This attacks the argument on its own terms, but in fact I think the argument given does not define induction well enough to say anything about it.