As tragic as it is, this is how the world has always been. People lie. They manipulate. And sometimes they, we, think we have experienced things we haven´t. One example of this is how obsessed we where with burning witches.
I am sorry to inform you of this Kerr, this is not how the world has always been. Base root, ancient cultures like the Australian Aboriginal, didn't do this, couldn't do it, simply because all in the community shared exactly the same knowledge. As time went by variations to the original knowledge was created and formed, divisions occurred and new communities were formed. Evidence of this is still found in modern day sociology, it is seen in the divisions of Religions where new sects, even whole new religions are formed, it is seen in the political world, in business and even down to divisions in families.
As for your example, it is very weak. Fear as one example is a very real and testable human emotion, albeit it is personal. The simple fact of life is, 1 person out of 1,000 or more may suffer fear and anxiety over a specific event, just because the majority didn't suffer or feel the same fear, in no way implies that which the one person felt, wasn't real and wasn't genuine. Though there are many idiots around who would say, you are not scared you are just putting it on, wake up to yourself and get over it, I do not feel scared so you shouldn't feel scared, there is nothing to be afraid of, et al.
Directly pertaining to the witches thing, I hope you understand that fear is a very real commodity. Many people were petrified pertaining to witches at the time, as strange as this may seem, witches reeked havoc in communities casting spells all over the place which by human perception at the time appeared to work. Now I am not saying that some people didn't use this to their advantage. The same phenomena can be found in the old west of the USA, just by pure speculation of an alleged crime, lynch parties were formed and people were murdered without trial and without justice. The world is full of such scenarios. Only a very narrow minded person would try to suggest, imply or conclude it was only perpetrated by religions.
Are you saying anyone should be given funding for simply stating that they have a hypothesis they want to look at?
That would be a perfect world wouldn't it. But alas, it isn't so.
What I am saying is anything which is viable should be given funding, without prejudice, bias or peer hierarchy. Yes something should be peer reviewed, but I would suggest it should also be reviewed by an independent, arbitrary body, just in case there was common sense there which the peer review missed.