To answer your first bullet: Solomonoff induction has many hypotheses. One class of hypotheses would continue predicting bits in accordance with what the first camera sees, and another class of hypotheses would continue predicting bits in accordance with what the second camera sees. (And there would be other hypotheses as well in neither class.) Both classes would get roughly equal probability, unless one of the cameras was somehow easier to specify than the other. For example, if there was a gigantic arrow of solid iron pointing at one camera, then maybe it would be easier to specify that one, and so it would get more probability. Bostrom discusses this a bit in Anthropic Bias, IIRC.
To answer your second bullet: Yep. To reason about Solomonoff Induction properly we need to think about what the simplest "psychophysical laws" are, since they are what SI will be using to make predictions given the physics-simulation. And depending on what they are, various transformations of the camera may or may not be supported. Plausibly, when a camera is destroyed and rebuilt with functionally similar materials, the sorts of psychophysical laws which say "you survive the process" will be more complex than the sorts which say you don't. If so, SI would predict the end of its perceptual sequence. (Of course, after the transformation, you'd have a system which continued to use SI. So it would update away from those psychophysical laws that (in its view) just made an erroneous prediction.
To answer your third question: For SI, there is only one rule: Simpler is better. So, think about how you are not sure how to classify what counts as "drastic." Insofar as it turns out to be hard to specify, it's a distinction SI would not make use of. So it may well be that a rock falling on a camera would be predicted to result in doom, but it may not. It depends on what the overall simplest psychophysical laws are. (Of course, they have to also be consistent with data so far -- so presumably lots of really simple psychophysical laws have already been ruled out by our data, and any real-world SI agent would have an "infancy period" where it is busy ruling out elegan, simple, and wrong hypotheses, hypotheses which are so wrong that they basically make it flail around like a human baby.)
Those are my answers at least, I'd be interested to hear if anyone disagrees.
FWIW I am excited to hear Carl was thinking about this in 2012, I ended up having similar thoughts independently a few years ago. (My version: Solomonoff Induction is solipsistic phenomenal idealism.)
This is highly related to UDASSA. In the linked post, especially Problem #2 (about splitting conscious computers) and bits of Problem #3 (e.g. "What happens if we apply UDASSA to a quantum universe? For one, the existence of an observer within the universe doesn't say anything about conscious experience. We need to specify an algorithm for extracting a description of that observer from a description of the universe"...)
Lanrian's mention of UDASSA made me search for discussions of UDASSA again, and in the process I found Hal Finney's 2005 post "Observer-Moment Measure from Universe Measure", which seems to be describing UDASSA (though it doesn't mention UDASSA by name); it's the clearest discussion I've seen so far, and goes into detail about how the part that "reads off" the camera inputs from the physical world works.
I also found this post by Wei Dai, which seems to be where UDASSA was first proposed.
Back in 2012, in a thread on LW, Carl Shulman wrote a couple of comments connecting Solomonoff induction to brain duplication, epiphenomenalism, functionalism, David Chalmers's "psychophysical laws", and other ideas in consciousness.
The first comment says:
The second comment says:
Carl's comments pose the questions you can ask/highlight the connection, but they don't answer those questions. I would be interested in references to other places discussing this idea, or answers to these questions.
Here are some of my own confused thoughts (I'm still trying to learn algorithmic information theory, so I would appreciate hearing any corrections):