Right, exactly. But this isn’t only about satellite tracking. A lot of the time you don’t have the luxury of comparing the high-precision estimate to the low-precision estimate. You’re only talking to the second guy, and it’s important not to take his apparent confidence at face value. Maybe this is obvious to you, but a lot of the content on this site is about explicating common errors of logic and statistics that people might fall for. I think it’s valuable.
In the satellite tracking example, the thing to do is exactly as you say: whatever the error bars on your measurements, treat that as the effective size of the satellite. If you can only resolve positions to within 100 meters, then any approach within 100 meters counts as a “collision.”
I’m also curious about the “likelihood-based sampling distribution framework” mentioned in the cited arXiv paper. The paper claims that “this alternative interpretation is not problematic,” but it seems like its interpretation of the satellite example is substantially identical to the Bayesian interpretation. The lesson to draw from the false confidence theorem is “be careful,” not “abandon all the laws of ordinary statistics in favor of an alternative conception of uncertainty.”
You don’t need to posit systematic self-delusion to explain any of these things—whether failing to eradicate malaria, or failing to recommend 100% funding of the top charities. You cannot arrive at a price to eradicate malaria by taking the price to prevent one case of malaria on margin and multiplying by the number of malaria cases. The same is true of poverty, homelessness, hunger, et cetera. There are a lot of popular, well-documented ways of giving to any of these causes and do approximately no good at all. Just identifying places where money can actually improve things a little bit on margin is an enormous improvement over the pre-EA state of the art in charity. But this doesn’t scale forever. For any one of these problems, as you spend money effectively on margin, you solve the most tractable cases and necessarily move down the ladder to increasingly intractable cases. At some point the most cost-effective way to save a life will switch from “buy malaria nets” to some other intervention. Even within a single year of grants, it makes sense to spread your money out a little, to make sure a) you aren’t saturating any of the top charities you’ve identified beyond the point of diminishing returns, and b) you aren’t missing out on value by ignoring second-tier charities who might outperform expectations.