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I do see it in how many of my friends are raising their kids, as well. Several of them will praise their child even when he/she is incorrect or makes a mistake - sometimes focusing so much on what a GREAT JOB they did at trying something, that they never actually correct the error or mistake. Schools are dealing with it as well ... teachers not allowed to grade in red anymore because it is too "harsh", or students being graded as correct for showing their work or explaining their POV, even if their answers are wrong.
There is starting to be a BIG backlash against this, mainly because it fails to prepare kids for the fact that they aren't good at everything. Somewhere along the line, "Self-Esteem" got redefined...from the original "you have worth" to the untrue and somewhat harmful "you are super great at EVERYTHING you do".
My wife and I had a great conversation this weekend about how grateful we are that we were raised by parents who didn't tell us we were awesome at everything if we weren't, because it means we work hard and continually strive to improve.