This could set someone up for any number of positive or negative effects, emotions, or actions, from long term depression or suicidal feelings to a burning desire to really improve themselves to actually become that unique and talented person they were told they are.
I certainly hated that growing up. It was years before I could believe I had done anything right, because people would say the same things either way.
But I think tokenadult was actually proposing something else: not focusing on oneself so much. Much like CS Lewis's concept of humility: "could create the greatest cathedral in the world, know it is the best, and rejoice in the fact that it is the most wondrous of all cathedrals; without being any more or less glad that he created it than he would be if someone else had created the cathedral."
Or to take another CS Lewis quote: "And every state of mind, left to itself, every shutting up of the creature within the dungeon of its own mind - is, in the end, Hell. But Heaven is not a state of mind. Heaven is reality itself." Focusing on self-esteem instead of the goal or substance at hand is shutting a creature within the dungeon of its own mind. That really is a great phrase for it.
(This is one of those things that when I say it, it sounds trivial, but I observe that there is a very pervasive cognitive bias to assume that stated goals === results, in a wide variety of contexts.)