Well, I wouldn't give up that easily! The default assumption should be that there's an underlying consistent reality, that paradoxes are in the map, not the territory (as was the case with the simple "mirror paradox" above). Assuming that an apparent contradiction is fundamental ought to be the last resort.
Think about free will for a while— focusing on what the act of choosing feels like, and also on what it might actually consist of— and then check Eliezer's proffered resolution. It's much less naive than you're expecting.
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Do they also not challenge Aristotle's Law of Non Contradiction?
that would be funny were it a paradox.