Let me put this all in historical perspective, and this maybe some comfort, albeit cold comfort. For as far back as we have documentation for, the Chinese publics view of Chinese martial arts has been about 90% hype, nonsense, bulletproof monks, flying swords, qi balls and all the rest.
The distortions of Chinese martial arts are not new, they are not caused by Shaw Brothers movies, idiotic articles in Inside Kung Fu, or the ChiComs with their competition wushu.
Chinese martial arts has, all the way back to the Ming Dynasty, had a huge fantasy element to it and truth be told, Chinese martial arts instructors, who were business men running schools or bodyguard services, played up the fantasy hype and profited from it.
The idea that there was some Golden Past Age in China where martial arts was no b.s., is inaccurate. Chinese martial arts has always had a very large b.s. component. And of course that impacts on the publics view.
So the problem is old. I very much agree with what a number of people have said about not worrying about it too much and just trying to lead your life in a way that puts a good spin on Chinese martial arts. And too, like a couple of guys said, education is a big part of it.
The key point is to stay calm, act dignified like I am in this picture.
just kidding, that is actually Zhong Kuei, the mythic demon catcher. He actually is kind of a good example of the mixed image that Chinese martial arts has in traditional Chinese mentality. On the one hand he was a very good, very brave and honest man. On the other hand his folk stories are full of magic swords, magic charms, flying through the air and all the rest of the nonsense.
Take care,
Brian