First, I would like to dispute that "fallibilism" is any better criteria of significance than verificationism, or even that it is mainstream today. It is true that most popular accounts of the scientific method mention Popper in this regard, but these accounts
do not reflect mainstream thinking in the philosophy of science. If anything, mainstream philosophy of science today has largely abandoned the search for criteria of demarcation, being more interested either in specific questions regarding specific sciences (e.g. what is the correct interpretation of QM), in what makes a scientific research program fruitful (following Lakatos), or else in general questions of what constitutes a good scientific explanation (cf. the work of Nancy Cartwright, Wesley Salmon, and others).
As for logical positivism and its twilight, three historical remarks:
1) It's important to note that the movement was born in the very specific European context of the inter-war period, and that, in the hands of Carnap and Neurath, it had a very specific
political dimension. Carnap's major work of the period was called
Der logische Aufbau der Welt, which better translates to
The Logical Reconstruction of the World. This is relevant, since this title alludes not only to Carnap's rational reconstruction procedure in the book (i.e. reconstructing the world of experience out of a slim conceptual basis), but also, and more importantly, to the rational reconstruction of a society that had fallen apart during the First World War. In other words, this title was carefully chosen by Carnap to signal also his alliance with a broader political movement that aimed at bringing about a more rational and just society (which for Carnap meant some form of socialism). As he himself puts it in the preface to the work:
We feel that there is an inner kinship between the attitude on which our philosophical work is founded and the intellectual attitude which presently manifests itself in entirely different walks of life; we feel the orientation in artistic movements, especially in architecture, and in movements which strive for meaningful forms of personal and collective life, of education, and of external organization in general. We feel all around us the same basic orientation, the same style of thinking and doing. It is an orientation which demands clarity everywhere, but which realizes that the fabric of life can never quite be comprehended. It makes us pay careful attention to detail and at the same time recognizes the great lines that run through the whole. It is an orientation which acknowledges the bonds that tie men together, but at the same time strives for the free development of the individual. Our work is carried by the faith this attitude will win the future. (Carnap, Preface, p. xviii)
Note the reference to an "intellectual attitude which presently manifests itself in entirely different walks of life", in particular the mention of architecture. Carnap is here referring, among other things, to the Bauhaus movement, which had close ties to the logical positivists (for more on this connection, cf. Peter Galison's work). This makes clear that Carnap and Neurath did not think of their work as just some narrowly technical philosophy of science, but rather as a contribution to a
whole new way of life. This also makes clear, e.g., his opposition to Heidegger: more than a philosophical opposition, it was a
political opposition. As he puts it at the beginning of the above quote paragraph:
We do not deceive ourselves about the fact that movements in metaphysical philosophy and religion which are critical of such an orientation have again become very influential of late. Whence then our confidence that our call for clarity, for a science that is free from metaphysics, will be heard? It stems from the knowledge, or to put it somewhat more carefully, from the belief that these opposing powers belong to the past. (ibid.)
That is, Carnap saw Heidegger as a reactionary, right-wing philosopher which still clung to the old world order, and saw his own participation in the Vienna Circle as heralding a new way of life. Of course, we all know how that turned out. Still, the important point is that logical positivism began as a vibrant movement that had many ties to the political and artistic context of Europe.
In that context, it was revolutionary, and had revolutionary ambitions. Thus, after the rise of Nazism and the immigration of its leading exponents to the USA,
the movement lost touch with its revolutionary roots (the Cold War context was also important: once they arrived in the USA, they were kept under surveillance by the FBI---cf. George Reisch's work). That is not to say that they lost all political touch. Carnap, for instance, continued to sponsor leftist causes, being apparently cited several times in the socialist newspaper
The Daily Worker and being very explicit in his "Autobiography" for
The Library of Living Philosopher's volume on him that even by 1963 he
still considered himself a socialist of some form (cf. pp. 82-83, which I think are very enlightening in this regard). And scholars such as André Carus have been at pains to argue that Carnap's broad philosophical outlook, with its emphasis on conceptual engineering and explication, is best viewed as still part of a program for the rational reconstruction of our way of life (cf. his excellent
Carnap and Twentieth Century Thought: Explication as Enlightenment). But it is to say that these political efforts were no longer part of a larger
movement, with connections to all spheres of life, as they were in the European context.
Thus, once transplanted into the USA, logical positivism lost much of its vitality and eventually lost its character of a
movement and became completely integrated into academic life (and even then they were still under scrutiny by the Hoover administration!).
2) Once they became a rather academic movement, however,
they still retained much of their importance, only this importance was now relative to academic debates, and not to larger political movements. Thus, for instance, Hempel's deductive-nomological model of scientific explanation (cf., for instance, his "Studies in the Logic of Explanation", reprinted in
Aspects of Scientific Explanation) is still considered a landmark in the field: most accounts of scientific explanation still begin by reference to this model (even if ultimately to reject it). Similarly, Carnap's
Meaning and Necessity was extremely important for the development of formal semantics, especially after the overall framework was refined by Kaplan (who was a student of Carnap), Lewis, Montague, and integrated with linguistics by Barbara Partee. Carnap also had a hand in rational decision theory (especially through his studies in the logic of probability, for example in his partnership with Richard Jeffrey) and was an early scientific structuralist who resurrected the Ramsey sentence approach to scientific theories (cf. the work Stathis Psillos in this regard).
This is all to say that, once they became integrated into academic life, their impetus and technical innovations still animated much of the debate. Indeed, I would say that,
in this sense, logical positivism is still alive, as their specific research programs (in the logic of explanation, in formal semantics, in rational decision theory) are still alive and well. Of course, their particular proposals have been superseded, but that was only to be expected, and, indeed, encouraged by the logical positivists themselves. Going back to the Preface to the
Aufbau, Carnap there says:
The basic orientation and the line of thought of this book are not property and achievement of the author alone but belong to a certain scientific atmosphere which is neither created nor maintained by any single individual. The thoughts which I have written down here are supported by a group of active or receptive collaborators. This group has in common especially a certain basic scientific orientation. (...) This new attitude not only changes the style of thinking but also the type of problem that is posed. The individual no longer undertakes to erect in one bold stroke an entire system of philosophy. Rather, each works at his special place within the one unified science. (...) If we allot to the individual in philosophical work as in the special sciences only a partial task, then we can look with more confidence into the future: in slow careful construction insight after insight will be won. Each collaborator contributes only what he can endorse and justify before the whole body of his co-workers. Thus stone will be carefully added to stone and a safe building will be erected at which the following generation can continue to work.
This spirit certainly animates much of current philosophy and especially current philosophy which works in problems first set by the logical positivists. So, again, I think that in this sense logical positivism has not faded away, and is still with us.
3) Finally, a word about the so-called verifiability criterion. Carnap did not put forward this criterion as an
empirical observation. Rather, he put it forward as a
proposal about how to best conduct scientific investigations. It is in his sense
analytic, and therefore it does not apply to itself, since it only mentions
synthetic statements. Note that for a statement to be
analytic for Carnap is not for it to capture some pre-existing meaning. Instead, a statement is analytic if it is part of the setup of a (formal or semi-formal) linguistic framework. Linguistic frameworks, and therefore analytic statements, in their turn, are not be judged by empirical adequacy criteria (indeed, for Carnap, linguistic frameworks
are empirical adequacy criteria), but rather by their usefulness in the advancement of science (this is very clearly stated in "Empiricism, Semantics, and Ontology", but was already clear in the early 30s in his
The Logical Syntax of Language, as encoded in his Principle of Tolerance, and also in "Testability and Meaning", which is very relevant for the discussion here).
So the idea that the whole movement foundered because of an obvious logical inconsistency is just bizarre (and even more bizarre when one considers that its members were all logical proficient).