I don't think hypocrisy can be gotten rid of. That requires too much effort and it is often self renewing.
Everybody knows about the snooping, gossiping neighbourhood lady, or the (almost)regular guy who wants to have pre-marital sex and also would prefer a virgin bride. The utter sleaziness of these images separates hypocrisy from our self image very neatly and makes it easier to believe that everyone is not hypocritical. What about the left liberal who says that the British were only doing themselves a favour while giving us the gift of English education and spends the entire day cussing in his or her mother tongue yet always switches to English while talking to a stranger and/or while wanting to be taken seriously ? The liberal arts students, (although they're studying art and proclaim it to be all engulfing and a universal language) will also judge the girl from Rajouri Garden/Punjabi Bagh for speaking with a Punjabi accent and having a discernible taste in fashion. They also do not seem to find henna designs on hands an art form worth pursuing although other forms of tattooing like face painting work quite well. Those are left for the street(poor) artists to earn (almost)alms with. The examples do not end here, but I hope you get the gist.
I think it is a defence mechanism which adjusts itself to your environment and life-style. The most liberal lady/man will have reservations about certain behaviour/section of people and react negatively to it. Yet, in isolation the same behaviour will seem entirely normal and even perfectly healthy, and the people quite useful to the society.
I have one reservation. Please do not go on and on about how hypocritical everyone is, assuming innocence on your part.
The very people who really rock and roll and claim to not care about people's opinions(rather too)proudly confess to consuming the cheapest of local narcotic substances and are also very particular about always mentioning the name of their favourite(always foreign-made) cigarette.
Stereotypes too are used to contrast certain behaviour with our own. Who doesn't stereotype? We know about the science/engineering student who finds the commerce stream student too shallow. Do we also know about the jhola and/or long kurta donning, cigarette smoking mascot of the sociology/economics department who finds the science student too shallow, uninterested in world affairs and the plight of people. In this example, the science student could easily be replaced by someone from their own department who likes to keep up with trends in dressing. Anyway, this list is boring and overlaps with the first but I hope you get the gist. It is funny how so many of us stand tall in contrast and yet be elitist(the elite in different communities though).
Anyway, good night world.