It's funny, I wrote a blog post arguing against humility not too long ago. I had a somewhat different picture of humility than you:

People internalize norms in very different ways and to very different degrees. There are people out there who don’t seem to internalize the norms of humility at all. We usually call these people “arrogant jerks”. And there are people – probably the vast majority of people – who internalize them in reasonable, healthy ways. We usually call these people “normal”.

But then there are also people who internalize the norms of humility in highly unhealthy ways. Humility taken to its most extreme limit is not a pretty thing – you don’t end up with with wise, virtuous, Gandalf-style modesty. You end up with self-loathing, pathological guilt, and scrupulosity. There are people out there – and they are usually exceptionally good, kind, and selfless people, although that shouldn’t matter – who are convinced that they are utterly worthless as human beings. For such people, showing even a modicum of kindness or charity towards themselves would be unthinkable. Anti-charity is much more common – whatever interpretation of a situation puts themselves in the worst light, that’s the one they’ll settle on. And why? Because it’s been drilled into their heads, over and over again, that to think highly of yourself – even to the tiniest, most minute degree – is wrong. It’s something that bad, awful, arrogant people do, and if they do it then they’ll be bad, awful, arrogant people too. So they take refuge in the opposite extreme: they refuse to think even the mildest of nice thoughts about themselves, and they never show themselves even the slightest bit of kindness.

Or take insecurity (please). All of us experience insecurity to one degree or another, of course. But again, there’s a pathological, unhealthy form it can take on that’s rooted in how we internalize the norms of humility. When you tell people that external validation is the only means by which they can feel good about themselves…well, surprisingly enough, some people take a liking to external validation. But in the worst cases it goes beyond a mere desire for validation, and becomes a need – an addiction, even. You wind up with extreme people-pleasers, people who center every aspect of their lives around seeking out praise and avoiding criticism.

But I actually don't think we disagree all that much, we're just using the same word to describe different things. I think the thing I called humility - the kind of draconian, overbearing anti-self-charity that scrupulous people experience - that is a bad thing. And I think the thing you called humility - acceptance of your flaws, self-compassion - that is a very good thing. In fact, I ended the essay with a call for more self-charity from (what I called) humble people. And I've been trying to practice self-compassion since writing that essay, and it's been a boon for my mental health.

(By far the most useful technique, for what it's worth, has been "stepping outside of myself", i.e. trying to see myself as just another person. I find when I do something embarrassing it's the worst thing to have ever happened, and obviously all my friends are thinking about how stupid I am and have lowered their opinion of me accordingly...whereas when a friend does something embarrassing, it maybe warrants a laugh, but then it seems totally irrelevant and has absolutely no bearing on what I think of them as a person. I now try as much as possible to look at myself with that second mindset.)

Anyway, language quibbles aside, I agree with this post.