Of course the same principles apply to objects in our ocean of air (we call the atmosphere). What is needed for Archimedes' to work is a low viscosity fluid and an object, both with "well behaved" (defined) density. In some wet analytical chemistry work I've done, I had to factor in both the volume of the container and the barometric pressure I was weighing it (and its contents) in; in other words I had to factor in the buoyancy of the glassware in air. In other work, surface tension, temperature, density gradients, compression, all factor in. In working with large systems, gravitational gradients, tidal forces need be considered.
Anyway, Fout is a result of the air-object system, and as said isn't directly related to the water-object system. (I assume Fout was measured in air, rather than in vacuum). Also, nothing is "forever" - in our Universe: "indefinitely" is more accurate. But most of these kinds of problems are based on simplifications of real world into some idealized (thermodynamic) system. The reason why a denser object sinks isn't because its density is less, its because its density is less, its in a (low viscosity) fluid, and its in a gravitational field. Hence mass isn't totally irrelevant. Archimedes allows us to ignore mass because our systems are very small relative to the planet (gravitational field) we're working on (in).