It was painfully obvious that he said the challenge beast comments as a joke. The fact that so many people took at as something more than that is hilarious to be quite honest. I didn't see anything smug/arrogant/delusional about him (then again I haven't seen him be smug/arrogant/delusional any time I've seen him.) The one possible thing was the relishing in Malcolm's departure but it was clear in that instance that it wasn't personal either, just Cochran relishing in the act of taking out a very competent social/physical/strategic player.