Nugatory said:
Clearly ##R'## is greater than ##R## so is outside the event horizon; thus the infalling shell of dust will reach ##R'## in finite time according to you and other external observers.
Careful. Once the infalling shell of matter is inside the radial coordinate of the external observer (which by hypothesis is distant from the hole), the geometry to the future of the external observer is Schwarzschild with mass ##M + m##, and therefore with event horizon at ##R'##, not ##R##. That means this external observer will
not, in fact, see the shell reach ##R'##. (We are assuming a purely classical model here with no Hawking radiation.)
Another way of seeing this is to note that once the infalling shell reaches ##R'##, it is at the new horizon, so light emitted radially outward by the shell at ##R'## will stay at ##R'## forever. So such light can't possibly get back out to the external observer.
What will be true is that an observer at radial coordinate ##R'## before the shell falls in will see the shell reach ##R'##, even though, since they are outside ##R##, they never see anything fall through the horizon of the hole before the shell arrives.
Nugatory said:
So our initial state is a black hole of radius ##R## and our final state is a black hole of radius ##R'##, and we get from one to the other in a finite external time.
No, we don't, if "external time" means a Schwarzschild time coordinate in the exterior region after the shell passes. See above.
Nugatory said:
We just can't use the Schwarzschild solution to describe what's happening in between.
We can still use the Schwarzschild solution for most of this spacetime; we just have to be precise about specifying which Schwarzschild solution applies where.
In 4-D spacetime geometry terms, what we have is the following: A region with vacuum Schwarzschild geometry with mass ##M## (region A), separated by a timelike thin shell region (region S) from a region with vacuum Schwarzschild geometry with mass ##M + m## (region B).
If the shell starts at rest at a finite radius, then an observer sufficiently far away (farther than the finite radius the shell starts at) will be in region B the whole time, and will never see the shell reach ##R'##, as above. Also, the term "external time" is best used to refer to the Schwarzschild time coordinate in region B for this case. An observer inside the radius the shell starts at will start out in region A and will not see objects reach the original horizon radius at ##R##; at some point they will pass through region S (when the shell falls past them) and will then be in region B. Whether or not they see the shell reach ##R'## will depend on whether they started out at a radius larger than ##R'##, or between ##R## and ##R'## (assuming they stay at the same radius throughout).
If the shell falls in "from rest at infinity", then as we go farther into the past, observers at larger and larger radius will be in region A rather than B; there will be no finite radius at which an observer will be in region B the whole time. But for any finite time in the past, there will also be some sufficiently large finite radius which is still in region B; so even for this case, the best meaning for the term "external time" is the Schwarzschild time coordinate in region B.