JMO, that individual is one of the finest examples of the Fine Old Naval Tradition of addressing sub-standard officers by "Saluting the Shirt" I've seen.
...at least since I observed a Naval Officer last name of kerry forty or so years ago.
(You can pay respect to the rank even if the dude wearin' it doesn't rate any at all.)
Yeah, been there & done that in the Navy.
Nevertheless, certainly the Chiefs & other Offices tend to quickly scope out the bloke's number & treat the jerk accordingly as far as they can get away with. That probably increases his 'jerk-ness' but most leaders realize that RESPECT must be earned. Pretense can be ordered. Window dressing to the letter of the law may be operative. Yet, Authentic respect must be earned.