The thing that makes Blue such a good Pokémon rival isn't that he's a jerk. I mean he is, but he's become an iconic character because the games constantly reinforce this idea that he's potentially better than you in a frustrating way.
Blue doesn't just boast about his accomplishments (which usually consist of him getting to places before you do,) but he demeans your success as well. The things you take as victories are immediately reduced as soon as you run into him.
I think the best example of this is the S.S. Anne, where he first boasts about catching 40 kinds of Pokemon. This is a timely brag because around this time in the game is when you have to collect at least 10 Pokemon for the HM for Flash.
On Route 11 to the east of Vermillion City, there's also the little lookout spot where Professor Oak's aide gives you the Itemfinder if you have 30 kinds. Now, the chances of you having 30 kinds, unless you've been really actively searching for them, is pretty low.
What you might see as an "Ah, FINALLY, 10/30 kinds! I can get that item I need!" success is just a throwaway brag from Blue. He then describes the "cutmaster" (the captain who gives you the HM for Cut" as "just a seasick, old man!"
So you've battled your way through the whole ship and now the reward that is kinda your victory lap is seen as pathetic by your rival. Even after you beat him, he still takes a second to knock your whole adventure down a peg.
This is pretty smart from a game design stand point, because not only does it make your victories over your rival super satisfying, but it also enhances your own character as someone who, though silent, is ultimately a good force in the world. Blue's attitude renders you a hero.
This builds and builds so that when you beat Lance and learn that Blue actually beat the Elite 4 before you and is now champion, you finally get the chance to turn the tables and throw him from his throne, to which he says "My reign is over already? It's not fair!"
The Hall of Fame sequence, credits, and access to the Unknown Dungeon signify your time as champion, a time that Blue never got to have. For the first time in the game, you're ahead of him, and it makes for a great experience.
Anyway, that's it for this thread. Smell ya later!
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