Nothing wrong with “everyone is special,” because it’s true.
What I’ve seen (and I think it might be a current trend, but what do I know?) is that if kids are told how much better they are, and how they can do anything, and nobody better tell them otherwise, then that’s a monster in the making. This can be part of the “you’re special” mantra, but it doesn’t have to be.
I was raised to believe I was “special,” but I sure as hell wasn’t raised to think that my shit didn’t stink, or that I was superior than others—quite the opposite, in fact. My parents had some good friends who were always bragging about how great their kids were—their kids were the BEST in everything. Their kids could do anything the BEST. And if there was something their kids couldn’t do well, that thing wasn’t very important.
While the kids of these friends of my parents didn’t turn out to be monsters, they had a tougher time of it because of how their parents set them up. They never did live up to their parents’ lofty expectations, (nobody could!) and they sometimes even embarrassed their parents with their behavior.
Another phenomenon I’m seeing is people who cannot, will not, accept criticism or correction. This can be especially true with creative endevors, because they can say, “well, I’m being creative, so how dare you tell me that my work can be improved?” Some people will not put in enough effort, nor discipline, not develop their skills or talents—but because they believe that they are so special, they don’t believe that it is possible for them to SUCK at something creative. They’ll say, “I meant it to be that way!” or whatever. I’ve seen a lot of this. The delusional ego of someone who believes that their “specialness” will override everything else is a painful thing to see.
Fortunately (or unfortunately, depending on how you look at it), such a delusional ego is soon crushed by the real world. The real world will chew them up and spit them out, flatly telling them, “Dude, that thing you did there, it SUCKS.” And having all the tantrums in the world and screaming about how “special” they are won’t change that. But it’s one reason why I don’t want to teach art (this has been suggested to me a few times). I have no patience for “But I’m special so you can’t criticize!” and frankly, I’ve just seen too much of it to stomach any more of it.