Secondly, you're making the logic error A => B implies not A => not B. If state spaces as large as modern memory limits allow are too large, that doesn't imply that state spaces far below modern memory limits are small enough to handle.
Thirdly, your program trivially terminates doing nothing.
Pretend that an OOM condition is the same as a False answer. :3
Here's a program, building on the previous one, which either terminates or doesn't.
from itertools import count
for i in count(1):
if not is_collatz(i):
breakI can tell you now that your code terminates. The set s is strictly increasing in size, inevitably going towards an OOM condition if the loop doesn't terminate by other means. Note that we are talking about determining halting or not halting, not with which value the program halts.
This is not a troll. You tried to respond with something witty. I just pointed out that in this case things like the collatz conjecture don't apply, because it is a conjecture over all natural numbers. When you are working with finite memory, there is no way to encode this conjecture into a program (e.g. by making it halt if the conjecture is true and making it loop when the conjecture is false).
Real-life computers have bounded memory, so they don't have any more computational power than, say, regular expressions matchers -- every computational task performed by real computer can be represented by appropriately complicated regular expression. That's why one needs to be especially careful when arguing from computability when talking about real-life problems.
The more serious issue is a treatment of I/O.