Very interesting. I want to start reading Nietzsche again.
One common trope I've seen with narcissists is, they always demand that other people self-destruct ("take one for the team") for the greater good, but refuse to do so themselves. I was recently having a discussion on self-sacrifice and how it relates to "the struggle" with a Marxist-Leninist friend of mine. There are plenty of organizations on the radical Left (both Marxist and anarchist-oriented) which push for what they conceive of as extreme discipline; namely, monitoring other members' consumer choices, personal relationships, what kind of music they listen to, and so on, all in the name of molding the mind so that it becomes "non-oppressive". But it's not really - it's only a means in which others within the organization (usually the higher-ups) get to bully others whom they see as morally imperfect.
I think you're right. The problem in this case is narcissism, and narcissism almost always grows in people who are broken in some form. Narcissism is taken up in order to compensate for lack of knowledge or (emotional) strength. In the scenario of me and my friend, you see a bunch of Marxist-Leninist-Maoist college kids being bullied into thinking of themselves as soldiers without any war. I'm not necessarily against rejecting capitalist culture as much as possible, but in this case, the call for that rejection is being driven by the egos of others, rather than an action to ensure a higher goal.