That's the point. Theoretical limitations has no bearing on solving the practical problem. That is why RichardHeart's original point [1] is wrong.
[1] The halting problem states you can't predict what a turing complete program will do, until you run it. This means to some degree, that you can't predict what your "smart" contract will do, until it does it. Thus turing completeness causes security to be far, far harder than non turing completeness. This is how you lose the millions of dollars as the DAO did after it passed audits.
Formal verification will be necessary in practice. This is not an ideal outcome either, since (1) you have to formally specify the problem you're trying to solve and (2) the proof that the code meets the specification can easily be bigger than the program, by many orders of magnitude. Even this does not guarantee that bugs won't happen, since there's no guarantee that your specification accurately describes the problem you're solving.
This line of reasoning does not help me write better code, and does not address the parent's concerns. Using this argument, I can say that every single program I will ever run in my lifetime is also decidable, since eventually the computer I'm using to run it will stop working. This of course does not mean that I will write bug-free code, nor does it mean that I will write code that is feasible to prove correct.
What I want is a decidable programming language where it is always feasible to reason about the smart contract's halting states for arbitrary input. Bitcoin and its derivatives let me do this. Ethereum does not.
If I can do this, then I can feasibly reason about how my code will react to other peoples' inputs (e.g. I can prove the absence of DAO-like re-entrance bugs). The fact that Ethereum allows smart contracts to be written in undecidable languages means that this is not feasible in practice.
Edit: Rereading your earlier comment, I understand now - you're talking about other contracts your code calls, not vice-versa. In that case, I'd point out that you're totally free to either write those contracts yourself if they're not already provably secure, or write your own code such that it's formally proved to work regardless of what those contracts do.
I also have to reason about the transactions that invoke other smart contracts that, through one or more subsequent calls, will call into mine. These transactions are inputs to my smart contract as well. Recall that the DAO was hacked by an "attacker" contract that called into it, for example.
> I'd point out that you're totally free to either write those contracts yourself if they're not already provably secure, or write your own code such that it's formally proved to work regardless of what those contracts do.
If formal specification and verification were practical, we'd be doing it in every programming domain. Normally, few people bother since (1) it takes a lot of work, and (2) the consequences of bugs are small in most domains, especially compared to the consequences of not shipping code on time. If you have not tried to formally specify and verify the correctness of a non-trivial program before, I encourage you to try it before recommending that strategy (especially if that recommendation includes telling developers to rewrite other peoples' code).
Since smart contracts have other peoples' money attached to them, the developers' first priority must be user safety. Ethereum does not appear to take this seriously, since (1) its default programming languages are not designed to be amenable to formal verification, and (2) smart contracts are allowed to call into one another.
I would much rather program on a blockchain that kept smart contracts completely isolated from one another, and required me to submit a machine-checked proof that the user's money (1) will be sent to an address of the user's choice automatically no more than X blocks after the deposit, and (2) cannot leave the smart contract at an earlier time without a one-time-use signature from the user. If a smart contract cannot be proven to do both of these things, then the blockchain should prevent it from running.