Well, that's your problem right there. The Incredibles doesn't dismantle that position at all. In fact, I think it's the primary message of the movie; it's an anti-political correctness rant couched in an entertaining superhero action drama.
Yes. The major point of the quote is that Syndrome is wrong - he is the villain, you know, so his philosophy is supposed to be flawed. Dash is wrong, too, when he says as much - the difference being that Dash learns, and Syndrome does not.