Shaddy, your "proof" sounds like it comes from a textbook somewhere, but all my mathematical intuition screams that there must be a flaw in this logic. As I said before, I'm not a mathematician but a physicist - I like to think in terms of concrete stuff.
My first thought was that the whole conclusion seems to conflict with information theory; you generate information where there is none. Can you disprove
this line of reasoning? Thinking further though, your "proof" does not do anything for finite sets except for the trivial observation that, with a finite set of people, the number of errors is also finite. You are not really boosting the accuracy rate, you're only making sure the amount of errors is not infinite (right?). Maybe that could lift my objection, though my math is not good enough to really be certain.
After thinking a bit more, I have far greater problems with the following paradox. You imply that, for every infinite sequence of ones and zeroes, it is possible to find a
uniquely defined equivalence set. Accepting that, let's evaluate this "algorithm" (it has infinite runtime, but
apparently such an algorithm is acceptable in your paradigm!):
1. Take an infinite sequence of ones and zeroes.
2. Change the first element. By definition, the resulting sequence will still be in the same equivalence set as the original one (there is only one mistake!).
3. Now, do the following: IF we are in the original equivalence set, change the next (second, third, etc.) element. ELSE, halt.
4. Repeat (3) for all elements.
Now, obviously, after repeating for all elements, the list will not be in the same equivalence set any more. Therefore, we conclude that after some number of steps (let's call it n), (3) must halt. But then, despite only having one difference, the list at step n-1 and at step n are not in the same equivalence set!
Paradox?