Unfortunately, it's spreading. You see a lot of this in London as well. I think of it as a learned narcissism with clustering behavior. I would argue you can see it across many groups although they differ in how it manifests - we notice the "hot-startup" narcissist because he/she is in our industry.
Social media certainly hasn't helped. It appeals to the worst in human behavior. Communication devoid of truth or nuance in exchange for the shallow and sadly addictive approval of strangers. It teaches us to play games in which we are rewarded for what we portray outwardly rather than to be introspective. It is unfortunate that this mindset has been brought into the workplace, but perhaps much sadder that it likely affects relationships (parenting in particular) as well.
Diagnose? No, probably not. Finding another label for a group of people in the Valley you are already predispositioned to hate isn't insight. And limiting it to a geographic region with such flimsy cultural boundaries smacks of projection.
Want a bold stand? The (now defunct) blog The Last Psychiatrist spent years arguing that narcissism was society wide and generations deep.
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