I think it shows arrogance and rudeness if you dont reply. I always say thanks or cheers if someone compliments me.
I know what you mean Wild, I used to play with a chap in my old society that would say great strike as soon as the club face touched the ball and great putt as soon as your putter touched the ball....the final straw came when he started calling everyone 'love'.
Stood on the 1st tee one morning, I sliced my opening tee shot OOB only to hear 'great strike love' as soon as i'd touched the ball, I totally lost it with him and warned him if he spoke to me once more i'd kick his teeth in
I'm not proud...its not big & its not clever! lol