I suppose you are quite right about the *vicious cycle" (and all of the rest). The only thing that comes to mind to add to our discussion is that one's response to the "authoritarian" people depends on one's goal. If your goal is to accomplish something and you need their assistance - then it is OK to "acknowledge" them and feed their ego.
However, if your goal is to teach yourself how to oppose authoritarian people in an effective way - then you should do something else.
If you need to teach yourself how to subordinate, then you should try to be "in service".

You are right, though. It is all about one's inner journey and personal growth. Every situation we face help us learn and evolve, if we manage to see it in this way.

Having the courage to be stupid ;) I realized that it's the inner child who feels "not good enough" who needs to overcompensate through "knowing it all".

Oh, Gosh! I so much know what you are talking about :D

Thanks for your valuable comment!