In an ideal world everyone does everything right.
Rule 5-1-1h addresses a real world happening to correct the situation should an umpire make the mistake. The rule is specific and requires a VERBAL ANNOUNCEMENT.
If the umpire did not verbally state "foul ball' then no mistake has been made and nothing to correct. The hand signal, while in error, means nothing per this rule. Let the play stand.
That said, nothing irks me more than an umpire who is not honest when he has made a mistake. If he tries to save face because the verballizaton was not loud enough to be proven definitively then his integrity comes into question.
Without integrity all is lost.
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