Self Esteem or Grace Esteem?

This is transcribed* from the Q&A after John Piper's talk on Charles Simeon:

'The question is would I comment on the teachings of self esteem in the church today especially the comment that before you can love God and others you must love yourself?

I think it is extremely wrong headed, and I would treat it much the way Dr. Nicole treated all those inadequate views of the atonement and say there is of course a seed of truth in it. Namely, we must not deny that we are created in God's image, and we must not deny that God in His grace has a great purpose for every person and can use us significantly no matter who we are.

But it is wrong headed. I mean, I would have answered Steve Roy's question differently than Dr. Nicole did the other night, and that may just have to do with our relative positions.

Steve said "What do you feel about the view that says Christ died to rescue valuable humanity and thus we see a reflection of our diamond-like quality in the price paid for us?"

To me, that's almost blasphemy because it inverts Romans 5:

"In this God shows his love for us in that while we were diamonds, He recognized our value and paid the necessary price that would correspond perfectly to who we are. "

That's heresy, I think. Rather I think the text says,

"While we were yet sinners, godless, helpless, unworthy, God does something utterly unlike tradesmen who barter with diamonds. He gives His Son for the unworthy."

I'll tell you what I do very practically in my own counselling. I have never counseled self-esteem, I counsel grace esteem. I believe that the reason people are immobilized by their sin and the rottenness of their backgrounds and their dysfunctional families is because they are not able yet to grasp grace. They are not able to grasp the Cross and feel the Cross.'

*(I have tried to transcribe it verbatim. However when in doubt, listen to the message. Emphasis mine.)