Induction step: We assume that P(k) is true and then we need to show that P(k+1) is true as well.
If k is arbitrary and we assume it's correct, then how come one can't say,
j = (k+1)
and assume p(j) is true because j is arbitrary just like k and it has the same form of p(k).
That logic sounds incorrect, but technically, if k is arbitrary, meaning any (all?) value for P(x), then why would P(k+1) be false ever if P(k) is true.
Perhaps the answer lies with your definition of arbitrary. Consider this example of arbitrary used in the rule of Universal Instantiation
Rule:
(FOR ALL x) P(x) => P(c) where c is some arbitrary element of the universe.
Here, arbitrary means c could be literally any value (in the universe of course). Assume the universe for an example of universal instantiation is all integers. Then if P(c), then P(c + 1) is also true. I don't think that can be argued here.
So why then, can P(k + 1) not automatically be assumed true by P(k)? I believe the real issue here is the meaning of arbitrary, perhaps there are two different types of arbitrary? What is wrong here?
Would you consider "k" to be arbitrary? My issue is that if you call it arbitrary, why then for the rule of UI can P(c) where c is arbitrary mean to say that c means "every" because it's arbitrary.
One is not assuming that $P(k)$ holds for all $k$ in proving a statement by induction. Rather we are trying to prove that if $P(k)$ happens to hold for a particular (but unspecified) $k$ then $P$ will hold for the next i.e. $k+1$ term. We cannot say "assume $P(k)$ is true for an unspecified $k$, then let this unspecified $k$ be $k+1$". Once we have assumed that $P(k)$ is true (for this $k$ only!*) this is all we know and we assume no more. It is our task to establish that $P(k)$ being true implies $P(k+1)$ is true.
*A caveat here is when one uses strong induction, thereby assuming $P$ is true for all natural numbers up to and including $k$. We still are not assuming $P(k+1)$ though, that is on us to prove given that $P$ is true for everything before $k+1$.