Believing you are great will help you do great things, which will make you even more confidant, thus even more great. At first it seems embarrassing, which indicates lack of subconscious conviction. Laughing is a reaction to an incongruity. Surprise, confusion, dumbness, mistakes, impossible, embarrassing, belittling of self or others can be funny. It is the brain's way of shutting down to keep illogical trains of thought from being remembered in a serious area.
People naturally fear and avoid confusion and rule breaking.
This must be overcome to pioneer, which is the most valuable thing. Failure in childhood leaves a permanent drag. Control, like failure, will damage a child's drive. The less the better. Less control would be necessary if kids were raised in an environment that allowed them and there parents more space.