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.
Sure. But if you have an argument that some guy who shows me apparent magical powers has the power to torture 3^^^3 people with probability substantially over 1/3^^^3, then I bet I can turn it into an argument that anyone, with or without a demonstration of magical powers, with or without any sort of claim that they have such powers, has the power to torture 3^^^3 people with probability nearly as substantially over 1/3^^^3. Because surely for anyone under any circumstances, Pr(I experience what seems to be a convincing demonstration that they have such powers) is much larger than 1/3^^^3, whether they actually have such powers or not.
Correct. That still doesn't solve the decision theory problem, it makes it worse. Since you have to take into account the possibility that anyone you meet might have the power to torture (or reward with utopia) 3^^^3 people.