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Contiguous territory rule - Reentering US from canada even if stamping is denied

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No unfortunately that's not what it means. The article states this w.r.t revalidation when attempting to renew Visa:

"Readmission under the contiguous territory rule is not available to those who apply for new visas at one of the U.S. consulates during a visit to Canada or Mexico. So, if an H1B worker with an expired visa goes on a short trip to Montreal and applies for a new H1B visa, the contiguous territory rule will not apply. Of course, if the visa is issued, the foreign national can simply return to the United States in H1B status using the new visa. If, however, the visa is not issued, s/he does not have the automatic visa revalidation rule available to allow reentry to the United States."

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