> On the other hand, I think that we underestimate childrens ability to get up again after failure or isolated stray word of discouragement. Telling children they sux one too many times will lower their self-esteem, sure. However, most of them will recover from hearing something slightly discouraging once in a while just fine.

For sure, I would even go so far as to say discouragement is a normal part of life and if one was to shelter a child from all forms of discouragement - assuming that's even possible - then that child would probably not be very well equipped for life generally. This is an interesting issue as well, but I think it's orthogonal to the main point I was trying to make.