voodoodoll,
I have heard this line for a long time now, and it seems to me that people are confusing "ego" - the character traits that make up the mind of the self - with selfishness and self-centeredness.
Ego is essential to survival. It helps us to make healthy choices and discriminate among the possibilities life offers each of us, including the possibility for loving All, and living as though All Is One.
As I believe Jesus Himself would put it, we are each the I AM. He had a sense of Himself as a human being, distinct from but connected to all others.
Ego is not inherently bad or unhealthy. Selfishness and self-centeredness are a different story.
That's the view from here! Take care...
Ken