This is my first post here, but I've been reading about and pondering type and Jung's functions for about 10 years now. I'm not a newbie by any means.
Anyway, this may sound terribly biased but it's not meant as a judgement -- just trying to understand things by trying different angles.
It seems to me that tarot card reading is one of the best examples of Ni in action. It involves archetypes, introspection and "deeper meanings". It also involves massaging data and recontextualising it to fit those archetypal images.
In my opinion, it also involves a lot of "confirmation bias": a tarot reading can never be wrong, because all you have to do is recontextualise the data and... BAM! It all fits. (You also see this when an INTP and INTJ argue -- the INTP feels like the INTJ is playing a shell game in order to always be "right".)
So that's my hypothesis: so-called "confirmation bias" is an artefact of Ni.
As an added bonus, if you buy John Beebe's model (which I do), Ni in INTPs seems to manifest itself in the Senex/Witch archetype as a kind of negative "magical thinking" whereby everything seems to conspire to point towards the worst possible outcome. (See, for example, Billy Bob Thornton's more OCD-ish traits.) Again, it all involves confirmation bias, and this may explain why this is such a bugbear with INTPs.
(I wrote this as conjecture but in the process near-convinced myself, but I'd still like others' input.)