To use his first example, when he's being insulted why spin off into emotional-analysis neverland? What's happening there is you're being abused by an asshole, and you should respond to said abuse and, once that situation is resolved, examine the real issue more thoroughly.
I'm speaking as someone who used to think exactly like this guy. What I realized in early college was: In general, no one cares. No one cares if you're partially wrong, no one cares if you're a little off or awkward, no one beyond your family/SO and close friends gives a flying fuck about your emotions. Nor will they remember a slight moment of awkwardness a week later. They're simply far too consumed with their own lives for it to matter. Demanding perfect social interactions is paralyzing, irrational and not expected.
He does arrive at some appropriate conclusions ("Know thy worth"), but all the analogies and self-analysis he does isn't "emotional processing", it's simple insecurity. IMO the only emotions he's processing in those moments are fear and anxiety.