This is usually valid, since good players have no reason to lie as the Atheist nor do they have any reason to distrust their ability (unless Drunk’s on the script), so it just turns into a game of reading one slot’s alignment with no more fun happening.
I think Fifth Wind is broadly exempt from this, though. Even though the singular Atheist might know everyone’s good, nobody has any reason to just go “yep it’s you or nobody” — and with the announced Au’Wre time limit, there might not even be time to just execute everyone else before the Storyteller so there’s a pressing time limit to disprove as many worlds as readily possible. Which is hard, given the evil team’s composition.