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.
Your understanding of "strictly bounded" is artificial, and not what I was talking about. I was talking about assigning a strict, numerical bound to utility. That does not prevent having an infinite number of values underneath that bound.
It would be silly to assign a bound and a function low enough that "You wouldn't take a 1% risk of losing 1,000 people, to save 2,000 people otherwise," if you meant this literally, with these values.
But it is easy enough to assign a bound and a function that result in the choices we actually make in terms of real world values. It is true that if you increase the values enough, something like that will happen. And that is exactly the way real people would behave, as well.
Isn't that the same as an asymptote, which I talked about?
You can set the bound wherever you want... (read more)