[neutralino]

Erm.. I hate to burst your bubble, but Schmidt's response is merely saying that lambdaCDM could be wrong, but he doesn't say that you are correct in your thought experiment. The point is that Hubble's law does say that the further away something is, the faster it is recessing. However, it has also been shown that Hubble's law is only valid for small red-shifts (i.e. objects close by). More recent data has shown that for larger redshifts, the objects do not obey hubble's law and thus we come to the conclusion that the universe is accelerating in its expansion.