We can't use the universal prior in practice unless physics contains harnessable non-recursive processes. However, this is exactly the situation in which the universal prior doesn't always work. Thus, one source of the 'magic' is through allowing us to have access to higher levels of computation than the phenomena we are predicting (and to be certain of this).
Also, the constants involved could be terrible and there are no guarantees about this (not even probabilistic ones). It is nice to reach some ratio in the limit, but if your first Graham's number of guesses are bad, then that is very bad for (almost) all purposes.
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I suffer from this severely and pervasively, and was already aware of that before reading this post. So I just wanted to comment that your post fits spot-on with my experience. I tend to develop ugh fields around projects at work when I get stuck on them for awhile, and get emails from people asking when they will be done, and start to fear getting email about them at all, and then about thinking about them, and so on.
I have also gone through periods of 'ugh'ness centered on my voicemail box and my email inbox, each time when I knew or suspected they contained items likely to make me feel shittier about myself for whatever reason (e.g. reminding me about some thing I was in the process of failing to get done.)
I suffer from exactly the same thing, but I don't think this what Roko is worring about, is it? He seems to worry about "ugh fields" around important life decisions (or "serious personal problems"), whereas you and I experience them around normal tasks (e.g. responding to emails, tackling stuck work, etc.). The latter may be important tasks -- making this an important motivation/akrasia/efficiency issue -- but it's not a catastrophic/black-swan type risk.
For example, if one had an ugh field around their own death and this prevented them from considering cryonics, this would be a catastrophic/black-swan type risk. Personally, I rather enjoy thinking about these types of major life decisions, but I could see how others might not.