Classic example of the phenomena of seeing what you want to see: F-15s did an overhead VID and thought they were looking at Hinds instead of Blackhawks. One of incident pilots was the CC so no excuse for misidentification.
That said, I've seen aircrews make amazing misidentifications from calling an AN-12 a C-130 to aircraft entering break over a Brit CV thinking it was their "mother".
One of the things we focus on in our case study is the role of intra-flght comm in the mis-ID of the helos.
After Wickson's first ID pass, he asks May (the wingman) if he agrees with his assessment that the helo is a Hind. The phrase he used was, "tally two Hinds, confirm?". May heard this and assumed it was a statement from Wickson rather than a question.
May replies using the term "tally"...because he thinks that Wickson has confirmed that the helos are Hinds and by default bandits.
Hearing May use the term "tally" over the radio, Wickson then thought that was May's affirmative answer to his question as to if he thought the helos were also Hinds.
So, basically, they talked each other into thinking that the helos were badguys.
As you mention, there were other human factors that went into that scenario, like "wanting" and "expecting" to see Hinds there because of several reasons. Plus the lack of VID training and recognition of the MH-60s with the outriggers.
I'll have to look around...I have the transcript of the HUD tapes around my office here somewhere.