Yep, I agree that strong IIA of “if x is chosen from T, and S is a subset of T, then x is chosen from S” doesn’t apply if preferences are based on the relative merits of x rather than the individual merits of x. That statement seems obviously true on its own, and so I think the picture proof of this particular example detracts more than it adds, because there is a natural weak IIA here.
Yep, I agree that strong IIA of “if x is chosen from T, and S is a subset of T, then x is chosen from S” doesn’t apply if preferences are based on the relative merits of x rather than the individual merits of x. That statement seems obviously true on its own, and so I think the picture proof of this particular example detracts more than it adds, because there is a natural weak IIA here.