I'm assuming this situation was handled correctly, but not being a football official, I want to ask.

Denver committed an offside penalty on the last play of the first half. Kansas City got an untimed down and attempted a 63-yard FG, no good. The players run off the field, and the band takes the field. At this point, the officials realize that they hadn't marked off the penalty, so they pull everyone back out onto the field, mark off the 5-yard penalty against Denver, and allow KC to now attempt a 58-yard FG, also no good.

Does football have a "correctable error" situation like basketball does in this case?

We're actually having this discussion somewhat in this thread-> http://www.officialforum.com/thread/15358

But it seems to have died off.

I'm not sure of the NFL rule. I would like to think they got it right. Under NCAA an error can be corrected as long as another play hasn't been ran. So using NCAA rules the KC situation would have been halftime since they attempted the field goal.

Frankly, although the officials clearly goofed here, where were the KC players and coaches? Surely ONE of them should have noticed that the penalty wasn't marked off.

Well one of them did notice, his name is Trent Green(KC's QB).