Eugine_Nier comments on Rationality Quotes March 2012 - Less Wrong
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This quote is itself an example of the phenomenon it describes since it stems from a desire to be able to separate true from false science without the hard and messy process of looking at the territory.
Also hindsight bias.
I don't see that in the quote - it seems to be an attempted explanation for the existence of pseudoscience, not a heuristic for identifying such.
The problem is that it's still false. A lot of false science was developed by people honestly trying to find true causes. I also suspect that a good deal of actual science was developed by people who accepted a cause without enough evidence out of a desire to have a cause for everything and got lucky.