"Luck" as a synonym for probability is fine. Confusing to some, as this thread proves, but fine.

"Luck" implying a supernatural force that makes some people win more than others is 100% unequivocal nonsense, and this is what The Odds God is referring to. If someone is lucky (1st meaning) enough to win 10 coinflips in a row THEY STILL ONLY HAVE A 50/50 CHANCE the eleventh time. There simply isn't any such thing as luck that favours one player over another. Full stop, ad infinitum.

I also don't think OP's fold is an unforgiveable poker sin. Every chip you lose is worth more than the chip before it; the guy is surrounded by players who he feels will provide many more +EV opportunities over the next few hours which he's more likely to miss out on should he call this bet. It's a Mistake in the Sklansky sense, and it's a mistake in the practical sense, but it's only a smallish one and one for which OP doesn't deserve to be crucified.