Actually, I think we are in denial more often than we would like to admit it. Admission of imperfection carries an onus to do something, to make change — especially in the proactive culture of the Valley. That second bit about making meaningful change touches our ego and our very identity, and is so uncomfortable that we run away from it like from fire. Faking it is simpler, and there is a chance you might even make it and the problem will just go away on its own!