I’ve noticed many of my fellow entrepreneurs tend to take everything VCs say as the word of God because they’re the ones holding the check books. What I don’t think many of us realize is that some VCs (not all) don’t have significant experience starting or running companies; they’re merely a wealthy person who thinks it cool to invest in startups and enjoys exerting authority over others. I recently had an infuriating exchange with a potential investor who isn’t very qualified and has wealthy parents. I want to correct him on a number of assessments but my cofounder wants us to grovel. I hate doing that.
Of course, just be tactful and polite.
Your options aren't (or shouldn't be) to grovel or fight. Use it as an opportunity to skillfully show your investor that you know more about the space than they do. If you read Pitch Anything, you'll learn how to use your knowledge to establish frame control.
That said, you can also win the game by getting their money. Let's say you "grovel" and end up closing $500K. Did you lose? If your cofounder wants to give them unreasonable terms as a form of groveling I would strongly recommend against it. But if the groveling is simply placating them, listening to their (potentially stupid) ideas, and engaging in a conversation with someone who doesn't have domain expertise, that's part of the game. Play to win.