Earlier quoted context omitted.
That's just pushing the problem up a level. Adding an explanation is proposing a model for the coin's behavior. Regardless of the model proposed, and whether it is confirmed or refuted, if the coin is fair you learn nothing. On the other hand, if the coin is not fair, Solomonoff induction works.
> That's just pushing the problem up a level. No. That's inverting the order of the interaction. On the first case you are observing a phenomenon, and using it to construct a model; on the second case you are constructing a model, and then using your observation to check it. Induction is a great way to create useful models, but only failures on falsification can give you confidence that the model actually works.
No, it isn't. Induction is a great way to create WRONG models. In fact, all of the interesting and useful stuff happens exactly where induction gets it wrong.
Example: the sun has risen on earth every day for the last 10^11 days or so. But we know that in another 10^11 days the sun will stop rising (because it will become a red giant and engulf the earth). We know this despite the fact that we have never actually observed this happen even once.