The 64-year-old owner of the Home Street shop, Emporium 62, died in hospital from a suspected heart attack.
He suffered from a terrifying ordeal when an aggressive man entered his shop on Saturday afternoon during a rampage through the city centre.
Loved in the area as much for his wares as his outgoing personality, friends have flocked to pay tribute to his character.
Surrounded by intriguing trinkets, collectible curiosities and invaluable souvenirs, Mr Falcon attracted a following of loyal customers, mesmerised by his knowledge, his hoard and his engaging manner.
Stand-up comedian and magician Phil Butler first met Mr Falcon in February.
He was performing at the King’s Theatre nearby and popped in to Emporium 62 for a look around the shop.
He described his first encounter with the shop owner as a voyage of discovery where, for over three hours, he only managed to scratch the surface of the stuff he had.
“He showed me out the back, and downstairs which was also full of amazing gear,” Phil said. “Boxes and boxes of comic books, one of which hasn’t been opened for 45 years!”
He added: “It turns out that Dave was an ex-magician and we bonded straight away.
“I ended up spending many days with him, and we kept in touch when I left.
“It’s absolutely awful what has happened – he was such a nice guy.
“I spent time with him while I was performing in the Allan Stewart show at the King’s Theatre.
“I loved his company. We bonded straight away.”
Mr Falcon showed Phil his card and coin tricks from his days as a magician.
“I also showed him stuff that I do, and he and his wife came to see the show one night.”
Phil described him as a fascinating man who had “built a science” around the field of collectibles.
“He even said to me one day that if I wanted to put together a shop myself he’s got loads of stuff and for £5000, he’d give me the stock for a whole shop.
“He told me all about where would be best to open it and why.
“I was looking forward to my next time in Edinburgh so I could sit and have a tea with him and look around the shop.
“Every time you went round you saw something you hadn’t spotted before.”
The shop windows have since been boarded up after one witness reported items being “smashed up” inside the Tollcross store during the incident.
“I know Dave wouldn’t have stood for that,” Phil added. “He was very proud of his shop.”
Sam Lou, who had helped him out in the shop, said it was a tragic situation.
“I knew him from going into his shop – he was a generous and very outgoing man. I was very happy to have known him.”
Police confirmed that a 34-year-old man was charged on Sunday in connection with a series of disorder offences in the city centre.
A Police Scotland spokesman said: “Officers received reports of a man causing a disturbance in the Castle Street, Frederick Street and Princes Street Gardens area between 12.40pm and 1.25pm on Saturday, August 25.
“At around 2.10pm officers attended a business premises on Home Street to a report of a man causing a disturbance and behaving in a threatening manner. During this time, a 64-year-old man took unwell within the premises and subsequently died in hospital.”