1. we say in birchos krias shma – “tov yatzar kavod lishmo” – it is good that Hashem created honor for His Name. Our whole purpose in this world is to give honor and kavod to Hashem. Hashem doesn’t blush – the praising we’re doing isn’t for Him it’s for us to help realize His greatness, that’s the whole point. It is a kindness to us that Hashem created the concept of honoring His Name. It’s not flattery, it’s showing a sense of correct kavod. In davening, it’s having us say out loud a few times what we should be knowing and feeling every moment of the day, that’s all.
2. Of course bnei yisroel are here as a whole, part of a group, and Hashem looks down at the nation as a whole and loves us for all being the children of Avraham Yitzchak and Yaakov. But we are so much more than that. Hashem sends down many neshamas into one world together. He could have made a million worlds and given each neshama its own separate world, but He did it this way instead. That doesn’t take away from the purpose and mission of each individual neshama. You asked – “I’m one little person in a huge world, which Hashem created. Technically, why should He want to hear about my life?” I’ll go really Jewish on you and answer your question with a question – why wouldn’t Hashem care? Are you really that unimportant? And if you are, then why would Hashem bring you down here in the first place? We believe that Hashem didn’t only create the world but He also is actually being mashgiach over it every day. I believe that this applies to people as well. Hashem isn’t just going to create a neshama, bring it down to the world, and leave it to get on with all the other work He has to get done that day. He is mashgiach on us 24/7 whether we talk to Him or have anything to do with Him or not. Either way, He’s always with us, He’s always listening. It’s not like He only listens when we He hears us starting to speak up, and then once we’re done He leaves. In that case, I would agree, why waste His time to come and listen? But since He is always listening, we’re not wasting His time when we talk to Him, if anything we’re wasting His time when we don’t.