The key word here is "inward-oriented;" that is, based on internal logic, instead of on new evidence. When previous theories are destroyed by the mismatch with reality, the facts that supported the previous theory are either revealed as untrue, or merged into a newer and more correct theory, that incorporates new evidence and different links between the facts to come to a different, and presumably superior, conclusion.
On second though, that was a bad section to quote, although Boyd never really gave any better ones in his essay. I tried to note the way out without throwing on too much of Boyd's pointless terminology in the last sentence ("Fortunately, there is away out.") I clearly failed; my bad.
(Since there didn't seem to be one for this month, and I just ran across a nice quote.)
A monthly thread for posting any interesting rationality-related quotes you've seen recently on the Internet, or had stored in your quotesfile for ages.