Falling off the career ladder is in itself a strange idea. As I get older, it seems to me that the concept has little actual reality. Few people have linear career nowadays.
At some point, things tend to take a turn for the unexpected. It can be failing to reach the position you were aiming for or suddenly finding yourself unemployed. It can also be becoming in charge of something you weren't expecting and finding you like that more than you thought.
You have to find an equilibrium between playing the card you are given and stiring your life in the direction you want. It's not always easy but you can find interesting things to do from many positions. I can't stop thinking that to you they were horror stories but that might not entierely be the case from their point of view: hanging out at an hacker space, meeting people, working on new things, that's not the worst place to be if you want to rebound.