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JonahSinick comments on High School, Human Capital, Signaling and College Admissions - Less Wrong
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Object level arguments aside, people engaging in behavior A is still nontrivial evidence that behavior A is rational. Sure, it may be weak evidence, and can easily be swamped by object level arguments, but it can't be entirely discarded.
The dichotomy Rule B1 vs. Rule B2 is a false dichotomy – one can be pretty confident that people are acting irrationally in a given instance even when one isn't extremely confident, etc.
Strong evidence or it didn't happen.
That is my default reaction to this concept, having seen it so often on LW applied to unmeasurably small wisps of evidence.
Compare But There's Still A Chance, Right?. "But It's Still Evidence, Right?" is the other side of that dud coin.