I really don't want to get involved, but find myself getting pulled in...last post on this topic.
As a nation, I beleive, we are "chosen" and have an elevated status, as discussed in Tanya and other sources. As mentioned earlier, it does mean more responsability, so after one has this elevated status, if he sins etc, he is lower. It goes both ways.
On a personal level, it is NEVER healthy to compare (although natural). Every person is created with their own personal qualities and tests, and can never judge himself against his friend. While observing the Torah DOES make you a better person vis a vis yourself, not anyone else.
As to the original picture, it depends what message is being conveyed. Is it we are the chosen nation or you are automatically better then that Goy next door...
This is not as clear as if like it to be, but my understanding