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AdamO
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The example you mention is a little overly simplified for my taste. But the sentiment is right: correcting for collinearity is not a post-hoc procedure. This is guaranteed to lead to data dredging, since the result of collinearity is variance inflation, and adding or removing factors to get significant results (i.e. from reduced variance) is not a statistically sound procedure.

To dive into the example more, I think we have to distinguish randomized experimental studies and pseudo-randomized or observational studies.

Basically, the examples suggests in both scenarios: use experimental or pseudo-experimental design to reduce collinearity of factors. In randomized studies, you obtain covariate balance through the randomization assumption. Blocked randomization, or blocked design, ensures that covariates are balanced exactly rather than probabilistically (i.e. in their expected value). Similar to this is re-randomization; you can re-roll your die to obtain covariate levels which are balanced if the cohort design is not staggered. Other blocking strategies have been discussed elsewhere, like Latin Squares, and so on.

Often studies aren't randomized, so that several confounding variables may affect the association between a pseudo-treatment and an outcome. Here, a pseudo-treatment is something that can't be randomized for one reason or another, like smoking in children. Interestingly, pseudo-experimental design still only affects efficiency in this case: stratified sampling by risk factors--such as age, or social depravity based on neighborhood SES indicators in our smoking example--ensures that you sample a "broader" portrait of the general population without having to sample many people. This will not prevent collinearity as the example suggests, despite following a pseudo-experimental design.

In observational studies, then, a new field of causal modeling has emphasized the rationale for adjusting for certain variables in the analysis. With regards to whether it causes collinearity or not, we say, "So what?" And include it anyway. For instance, social depravity is highly correlated with the likelihood of child smoking and it is also highly correlated with children's health. When you adjust for its influence in measures of association between smoking and health, you find a somewhat attenuated estimate. This is because, by not accounting for social depravity, smoking is to some extent a measure of the hardship of life: low income, stable housing, adequate food, and so on, as well as the direct effect of smoking on health.

So in both cases, collinearity is something which is addressed a priori to data collection. The question, then, shouldn't be how to prevent collinearity from a data analysis perspective. It's simply to make a note of it, and account for the reduction in power. If a factor is the correct thing to adjust for in a model, you must do it if you can. If it renders results non-significant when an association would be expected, you may hypothesize that variance inflation overspent your power, and additionally report unadjusted associations, commenting on their differences. This would be an inconclusive finding, however.

AdamO
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