As a Korean, I grew up listening about stories of the 'fan death' and I believed it to be true--or at least thought it was bad for your health--until high school. I'm pretty sure some people still believe in the myth. The top reasons for the death were suffocation, hypothermia and short circuits. When you hear things like these you don't really question them, you just assume it's true and embrace it as a fact.
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Yes I think if you hear something enough it tends to bypass your logic at least in childhood. I think short circuit is a valid risk - although having earthing in all devices reduces the hazard quite significantly.