You seemed to have quite a good grasp of step one to me. It is important beacuse it identifies the problem. Until you do that you can't fix anything.
The direction as two parts to it. "We learned that we had to fully concede to our innermost selves that we were alcoholic, ..." This would mean recognising that we have this particular illness, that it is progressive and fatal unless arrested, that there is no possibility that we will ever be able to drink safely, and without help, it is too much for us. Do you have doubts about any of this. Look at your experience and decide.
The second part, "The delusion that we are like other people, or presently maybe, has to be smashed" Any faint or distant dreams about being able to drink like other people some day have to go. Harbouring these thoughts will undermine any effort at recovery. As soon as you hit a difficult spot, it will seem there is no real need to battle through, as you are only here temporarily anyway.
If you have grasped the reality of you situation, and your experience will be the best guide to that, then it will be much clearer about going to any lengths to find a solution. Step two will ask you to think about the solution, having identified the exact nature of the problem in step one.
Good luck with this.