My dad once told me that everyone is a hypocrite, just to varying degrees. I feel this is true.
Clearly some people are waaaaaaaaaay worse than others in this regard, and when they are constant and extreme, yes, it irritates me. In extreme cases, I do speak up. When they are just spewing forth a hateful stream of consciousness constantly, I speak up. It depends on the situation whether I speak up to come to the defense of another whom is being picked apart, or if I tell the hypocrite of the situation that I don't care to hear the bs, etc. I don't always speak up even in extreme cases. Sometimes there's no point in doing so, it's futile.
See my quote below from Socrates. Love that quote! I think it ties in well regarding being a hypocrite.
My husband is incredibly guilty of judging others while having no room to talk. Honestly, deep down, I know he knows this. He's projecting his self hatred outward. It's sad, really. I think how much energy that must take, and how much arranging of thoughts, etc. It seems like a lot of work.
Everyone is guilty of being a hypocrite at least once in a while. Myself included, obviously.
I find it's often not helpful to call someone out on it, because (particularly for repeat offenders), it is coming from self loathing and they will defend themselves to the death. They took the time to construct that fantasy world, they will fight for it. In cases where people really aren't coming from a place of protecting their own insecurities, and they are just having an ignorant moment, they might be more open. However, it would probably be best to be tactful and do so in a more subtle way - kind of making a point at some time in the future that gets them to think, but not necessarily realize that you did that deliberately/appreciate that you didn't embarrass them if they do realize it - if you want to keep the relationship intact. It depends on how big a deal it is, if they are harming others or not. Some things just don't matter enough to make a deal out of. Also depends on the type of relationship you have to that person.
I think intentions matter. There is a difference between an angry, hateful person constantly judging while being abusive themselves, and someone who would be mortified to realize that they were being ignorant, or embarrassed that they lacked insight, and is sorry once they realize it. Likewise, I think the intentions of the person "calling them out" matters too. And I think the history matters too.
My husband also had a habit of nitpicking every little thing, no matter how inconsequential. Again, this is his insecurity, he's afraid he's not enough, so he picks everything else apart constantly.
There are many variables, and each situation is unique. Therefore it would be hard to give a black or white answer regarding hypocrisy and what to do or not do about it in each unique situation.
Peace.