I don't understand your confusion: you're both right. Everyday decisions are logically chosen from our perspective but still lossy in absolute terms. That manifests when we are frequently wrong about our presumptions... every damn day, more or less.
Would you describe Jpeg as "Making practical generalizations and assumptions based on scarce information." ? Because that is what we do in epistemology. We don't lose information, we never had it in the first place. If I compared a way of deduction with a pool of complete information, assuming such a thing can exist, I would be comparing apples with oranges.
Would you discuss what type of hammer to use in order to break a banana? Apples-oranges is an analogy for irrelevance of properties when comparing two different things. Is that clear to you?
I don't understand your confusion: you're both right. Everyday decisions are logically chosen from our perspective but still lossy in absolute terms. That manifests when we are frequently wrong about our presumptions... every damn day, more or less.