 Quote by JesseM
Even so, I still don't see this as a counterexample to what Bell proved about the impossibility of local hidden variables explaining quantum results, ...
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JesseM,
You are missing the big picture on this. It is not that wm is presenting a counterexample to Bell. wm is presenting an example of local realism, which Bell had already presented a counterexample to. You should be able to see that wm is simply replicating what Bell himself has already shown to be true: that looking at versions of local realism with A and B will work. But if you extend that same logic into a situation with A, B and C, it does NOT work. Don't let the derivation wm presents fool you, because it does not disprove Bell in any way.
-DrC