This is why I get completely pissed off when I see some schmuck in a suit flattering their would-be employers during an interview, or some overcompensating upper-level worker playing territory / power games. It gets in the way of business. I don't think it's quite as black and white as you put it, but I agree nonetheless.
As much as I love etiquette, it's a nice little side deal, not the primary concern. What matters above all else is competence.