In Death Valley, going downhill just gets you to Badwater. (Though there might be a road or at least a trail there.)
In some places in southern Utah, it gets you to the top of a several-hundred-foot cliff that you can't descend. Worse, pushing to keep following the watercourse down can get you below some smaller steps that you cannot go back up.
In northern Utah, down gets you to the Great Salt Lake. Depending on where you're coming from, that may not be a place you want to get to.
In many places in the Basin and Range, down just gets you to a dry lake that's absolutely nowhere with respect to civilization, or even water.
In Nevada, down may get you to where the Humboldt or Truckee River disappears underground.
Going down is generally good advice. It's not always good advice.
As far as signal fires go, don't make them if you cannot control them. Being lost is bad. Being lost in a forest fire is worse.