While I understand the desire for some to have their egos stroked I find that the lies begin with the small stuff and it is better to be honest but to also have a reasonable solution as well as the willingness to support an endeavor to change for the better. I'd rather be told I'm a fat, egotistical, jerk than have someone give me a polite lie which leads me to unreasonable assumptions or conclusions about myself.
But of course this is not an excuse to be unkind in your honesty. There are polite ways to be honest just as there are polite ways to lie.