I like what I consider "reasonable bluntness". I may have an
  opinion, "That mole looks horrible on your face." [not likely
  because I don't pay attention to ppls appearances most of the
  time] - yet would I express it?

  Is it dishonest if I don't?

  I don't think it's dishonest.

  if my nephew is telling me a creative story that isn't factual
  but is entertaining, do I stop and say, "You're full of shit?" I
  don't - because the story is designed to be entertaining, not
  factual. There's a difference.

  Yet, if someone is trying to convince me something is true and
  it's not, I call them on it. I also expect to be called on it if
  I've got crap coming out of my mouth. I appreciate it too.
  Sometimes I don't like it smile emoticon

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