The law of increasing possibility has a problem. It has to do with
self-reference.
In assumption 2, it states that possible things cannot become impossible. But this defines an impossibility. That is, the assumption can be phrased as "It is impossible for possible things to become impossible."
Now, according to the theory, at some point, this will become possible. The probability that this will occur last in an infinitely long set is infinetssimal. Therefore, at some point, the rules will change, due to the rules themselves, and possible things will start becoming impossible.
Of course, it is always possible that I've missed something... ;)
Godel just won't go away.