In the primitive times, the stronger person subdued all those who were weaker than himself/herself (probably 
) and this trend continues even today, basically, what with some G-8 or G-20 group of the more powerful nations of the world setting the terms of behaviour and also internal governance for all the less powerful countries. (Of course, those who lay down the rules are above the rules they so make - for others!)
Gods and religions were invented by the imaginative human mind/s so as to create cult-like belief systems among people; perhaps this was the first step of formation of groups of people or "societies". Naturally, the Gods had to be the most powerful and also the most superlative in each and every item which those primitive minds (which created the religions) could think of. (As an example, if Krishna had his BG boasting of Ch. X, he might most probably have said things like "I am Bill Gates among IT people" or that "I am Obama among national heads"!) Naturally therefore, a lot of boasting by our many gods had to be built in into our scriptures and prayers.
The gullible, unquestioning devotees are also happy that their god/s are supremely powerful and draw a lot of solace from that fact since such a god will definitely be able to prevent anything wrong happening to them. But the moment a person starts analyzing religion in a rational manner, religion becomes வெங்காயம் as the person whose name must not be mentioned in this forum, rightly said. There are layers and layers but ultimately "nothing"!
Views such as this about Chapter 10 verses have been around for a long time. How we see the world and such scriptures is a reflection of who we see ourselves to be inmy view.
B.Gita is probably one of the most scrutinized scripture in the world since it tries to teach and not preach. It has stood the test of time for the wisdom it has brought to people's lives. If we think there may be some merit in these verses let us see if an alternate explanation for the same set of verses make more sense.
In one set of verses Sri Krishna seem to suggest that Isvara pervades all beings (with other seemingly contradictory verses to follow). If Isvara pervades anything and everything then why call attention to few situations by saying "I am there where there is greatness".
If we are cynical we can say it is the concoction of those that want to control others by extolling enormous power to an Isvara as a way to control the gullible.
However there are many other excellent reasons. I will state only one of them here.
Human beings are uniquely endowed with the power to feel enviousness and jealousy. Very close human relations have gotten destroyed due to jealousy. Wars have been fought due to such feelings since humans tend to compare themselves to those they feel are their peers.
However if one has truly understood what the teachings of Chapter 10 their attitude would change.
Our tradition and values is about emphasizing excellence and not 'competition' which is only glorified in the west. If an artist sees another perform, either then can be overcome with jealousy or have a the wisdom to genuinely admire the work of fellow artists. This applies in all walks of life.
When we see greatness anywhere we are taught in Chapter 10 to see Isvara's Viboothi in that greatness.
If someone in my field excels in a phenomenal manner and even if I may feel a sense of natural competition I can freely admire the person's accomplishment since I will be seeing Isvara's Viboothi in that accomplishment.
Hence chapter 10 calls out all greatness in any field as Isvara's Viboothi.
This is but one explanation.
To illustrate Isvara's Viboothi in a work of art let me present this beautiful song in Latangi Raga by Ranjani & Gayathri ! The Niraval, Bhava, Bhakthi and precision are all Isvara's Viboothi - I hope you will listen to it with this perspective
https://www.youtube.com/watch?v=VPtGCC5gpFA
eace:
