We seem to be in agreement that Miller's argument (such as it can be reconstructed from the quotes) is weak, but disagreeing about the reasons why?
Likewise, anyone can claim to like weird foreign films on MySpace, but only a person very confident in her popularity actually will, because all the other people are too worried about being shunned.
The difference between the two cases is that the gazelle is wasting time that she could use to get a head start on the predator, as well as energetic resources which could prolong its flight. The behaviour is obviously paradoxical and demands explanation.
There is no similar loss of valuable resources on the part of someone expressing admiration for Lynch films: quoting lines from Mulholland Drive does not result immediately and systematically in being socially shunned. It is at most a way of expressing affiliation with one particular group rather than another, as PJ suggests, but any cultural behavior is going to do that anyway. There is nothing obviously paradoxical about expressing one's likes and dislikes, and furthermore it has no obvious direct impact on reproductive fitness.
IOW, if you hadn't invented costly signaling theory (or "handicap principle") and came across teenagers quoting obscure references on Myspace, you wouldn't feel compelled to invent that theory specifically.
I'm no expert on costly signaling theory, but I can't see any reason it shouldn't apply to opportunity costs as well as any other kind of cost. If I see twenty people using a social network to establish themselves as hip, popular kids who like all the cool trendy things to like, and one person using that network to quote obscure references instead, the fact that that kid is giving up the opportunity to cement their status as hip and popular seems noteworthy.
Evolutionary psychologist Geoffrey Miller recently published Spent: Sex, Evolution, and Consumer Behavior, a book on signaling, psychology, and consumerism. It's very up LW's alley - it reads almost as if Robin Hanson had written a book. (Actually, Hanson has never published a book, has he? Has anyone ever seen them in the same place? Hm...)
Sam Synder has written an overview/summary of the book, which I can attest hits many of the interesting points. (I would also praise the pervasive humor, which kept it readable and furnish many good examples of the 'reversal test', and the exercises at the end of the book.)
Some of the most interesting chapters to me were the ones dealing with Openness, which one will remember was recently shown may be changeable by psychedelics - possibly the first such tweakable member of the Big Five, leading to the suggestion that it may be worth considering changing it. Hold this thought.
First, Miller discusses the signaling of Openness (starting on page 108 of the PDF, logical page 207):
Why is Openness negative at its extreme? (Miller has remarked before this in Spent that despite what one might think, one of the other 6 psychological traits he covers, IQ, essentially has no bad amount to have - you have to be in the top percentile before IQ starts being a potential negative, and much marketing is covertly appealing to people's desires to look smart.) On the potential biological negatives of novelty-seeking:
Recent research shows something very curious: group Openness inversely correlates with parasite load, even after controlling for all the obvious confounds like health and longevity. (I haven't looked up this research yet; he attributes it to "Corey Fincher and Randy Thornhill at University of New Mexico, and Mark Schaller and Damian Murray at University of British Columbia".)
Incidentally, a good deal of LW's userbase could be described as 'young adults'; and it does seem relatively rare for old people to become transhumanists, as opposed to young or very young people. The next step, some anthropological observations which certainly look as if they are costly signalling something:
The final step - applying this idea to us:
The weak correlation with IQ has the troubling implication - what happens when you are highly Open but not especially intelligent, and you are confronted with memes & products optimized on the free market?
I am a little troubled because as a child I was interested in such alternative things and the Occult as well - I seem to recognize this pattern in myself. My inner Hanson asks me, 'why are you so sure you aren't still mistaken and that you aren't so Open your mind finally fell out?'
A closing link: 'the valley of bad rationality'.