Exactly kimck, you pretty much hit the nail on the head there. All kids need challenges from time to time, that is absolutely how they start developing self esteem. They have a challenge, think they might not be able to do it, yet succeed in spite of it "being hard". Victory! They can remember that feeling the next time they approach something that appears difficult. With our kids especially I think we have to be vigilant that they also are "allowed" to have these self-esteem building experiences. At 2 or 3, this is not such a big issue. However at school age, there sometimes isn't much during the day that is challenging and I think that can be very problematic for these kids in the long run.