Ok, then it doesn't solve the torture vs dust specks. But it does solve many analogous problems, like 0.5 sec torture for many people vs 50 years for one person, for example.

I touched on the idea here: http://lesswrong.com/lw/1d5/expected_utility_without_the_independence_axiom/

But it's important to note that there is no analogue to that in population ethics. I think I'll make a brief post on that.