Summary: the problem with Pascal's Mugging arguments is that, intuitively, some probabilities are just too small to care about. There might be a principled reason for ignoring some probabilities, namely that they violate an implicit assumption behind expected utility theory. This suggests a possible approach for formally defining a "probability small enough to ignore", though there's still a bit of arbitrariness in it.
No. The reason not to spend much time thinking about the I-am-undetectably-insane scenario is not, in general, that it's extraordinarily unlikely. The reason is that you can't make good predictions about what would be good choices for you in worlds where you're insane and totally unable to tell.
This holds even if the probability for the scenario goes up.
/A/ reason not to spend much time thinking about the I-am-undetectably-insane scenario is as you describe; however, it's not the /only/ reason not to spend much time thinking about it.
I often have trouble explaining myself, and need multiple descriptions of an idea to get a point across, so allow me to try again:
There is roughly a 30 out of 1,000,000 chance that I will die in the next 24 hours. Over a week, simplifying a bit, that's roughly 200 out of 1,000,000 odds of me dying. If I were to buy a 1-in-a-million lottery ticket a week, then, by one rule of ... (read more)