Worse in that people are falling into illusions of grandeur. I'd say it's more about being honest with yourself, and others, about your work and accomplishments. Embellishing is fine, but you do have to admit that it's gotten to a pretty ridiculous point these days, especially in the web world.

I'd also say that being more realistic and grounded will drive you more to achieve that level of success people often believe they've reached in their illusions. If you're a CEO of a revolutionary web 2.0 company operating in stealth mode, and you don't see any traction, you'll be more likely to give up because reality isn't falling inline with the ridiculous expectations you've set in place.

I will admit, I am guilty of this at times.

Was there ever an inherent value in either? Entrepreneur shouldn't be a term thrown around to sound impressive, like doctor is, because calling yourself an entrepreneur requires a lot less. Similarly, CEO should be a term that's no more impressive than your company. So somebody calling themselves the CEO of a two-man company doesn't make Steve Jobs any less impressive, because it's not two CEOs, it's Apple and Smallfry.