I used to think like this, and it does seem morally sound at first glance, but it has the big underlying problem of creating an excellent context in which to be a selfish asshole.

Turns out that calling someone on their bullshit can be a perfectly productive thing to do, it not only deals with that specific incident, but also promotes a culture in which it's fine to keep each other accountable.

I think they're both good points. An unwillingness to call out bullshit itself leads to a systemic dysfunction but on the flip side a culture where everyone just rages at everything simply isn't productive. Pragmatically, it's important to optimize for the desired end result. I think that's generally going to be fixing the system first and foremost.

It's also important to recognize that there are a lot of situations where calling someone out isn't going to have any (useful) effect. In such cases any impulsive behavior that disrupts the environment becomes a net negative.

You cannot call all the bullshit. You need to call what's important for you. That defines your values.

It's also important to base your actions on what's at hand, not teaching a lesson to "those people".