What you are referring to here I believe is the Gell-Mann Amnesia Effect [0] cited by Michael Crichton.
Note that the "Gell-Mann Amnesia Effect" is a discussion point by a popular novelist, not a well-researched psychological concept. Frankly, without deeper research into the concept, it's a quote from an famous person.
Years ago when local papers were still relevant, there was a local paper article about me and three other people. They got the details hilariously wrong. Everything was totally backwards. There was no plausible motive for malice, they just got everything wrong because the reporter was lazy or something. Didn't take good notes. After that I still kept my subscription to the paper and didn't doubt the accuracy of other stories in that paper, even from that same journalist.
So years later when I see the Gell-Mann Amnesia quote for the first time, the pieces all click. Plainly I had been afflicted, and I see no reason to think I'm the only one.
They are, for example, exemplary in terms of correcting errors quickly and transparently. I rarely come across errors these days, and the ones I see corrected below articles are almost always very minor, such as spelling errors in names.
In some circles, such as HN, it also seems to be en vogue to consider all media biased and unprofessional, every politician to be corrupt, every business leader as optimising (short term) profit with no regard for other considerations, every scientific study underpowered, and every headline clickbait.
I guess gratuitous negativity is often mistaken for expertise or intelligence. But in reality, it just renders any actual effort useless: why not be corrupt/lazy/incompetent/etc, when that is the charge that will be levelled against you, no matter what you do?
[1] https://thehill.com/homenews/media/424190-ocasio-cortez-accu... [2] https://www.cnn.com/2018/12/20/media/claas-relotius-spiegel/...
As for "it would find any traction if it didn't ring true with a lot of people." A lot of people throughout history have believed a lot of unscientific things. I don't believe we've reached a point of enlightenment where we no longer do that. Science not infrequently finds the truth is not what we expected, not what our intuition would lead us to believe.
In the absence of scientific research, the "theory" is as true and useful as any saying "two in the hand is worth one in the bush", "a penny saved is a penny earned", ...
EDIT: Looks like a sibling comment beat me to it
1) The incentive structures around libel laws are horrible. If you give the US Congress moral and constitutional authority to pass something like what the UK has they will make it very hard to criticise US politicians.
2) "especially on the right, but also the left" is wrong. All media organisations are routinely wrong on all issues - there was an anecdotal named law for this but I've forgotten the name of it, where if the media reports on something that the viewer understands it is obvious all the reporting is wrong, but then the viewer assumes that reporting on subjects they know nothing about is correct. One subgroup can't be more wrong when all of the group is basically all wrong - there is news that is wrong the way the consensus is wrong and then there is news that is wrong in radical new ways.
3) I don't have any examples of abuses of the UK system because the abuses would be suppressed under the libel laws. That is not a sane state of play to assess the merits of libel laws. The US system of messy, public opposition is much better than hiding all the conflict behind a veneer of civility - conflict does not disappear because people don't talk about it publicly.