I like the story, because it’s a reminder that perfectly logical people can fall down these rabbit holes. If there are children in that basement, of course you should save them, and if you find no basement, of course you need to stop and concede. You’ve messed up.
Any one of us can fall down a little “rabbit hole” if something gets past the radar.
Interestingly, this is a good example of the phenomenon. The original pizzagate conspiracy theory was about weird references to "cheese pizza" and "hot dogs" in the wikileaks Podesta email dump[1] and had nothing to do with pizza parlor basement dungeons. Like most conspiracy theories, I'm pretty much agnostic on this one (I try not to confuse gut feelings with actual knowledge). I do find it interesting how hard the media straw-manned it though, to the point where apparently some nutjob felt like shooting a round into the floor at a pizza joint. My gut is that the news was just ratings pandering and a bit of comedy, but as I said I don't see how I'll ever have access to the truth, whatever it may be, so I accept that and don't dwell on it.
As for the concept of unfalsifiable, but meaningful, beliefs, there's a philosophically important distinction to be made between those beliefs that are absolutely unfalsifiable, versus those that are merely practicably unfalsifiable.
[1] https://old.reddit.com/r/conspiracy/comments/5gutu2/wikileak...