I found this writeup about the history of cynicism to be very educational
http://en.wikipedia.org/wiki/Cynicism & it had NOTHING to do in it's original form as being a defense mechanism, it was a philosophy of life which I can completely relate to & find that this philosophy is actually fits my life.

However, the contemporary form of cynicism.......well there is quite a contrast between them but I still think it's quite appropriate to apply to the world in the shape it's in (Cynicism is distrust of other's apparent motives. It is a form of jaded negativity, and other times realistic criticism or skepticism) How can one feel differently about the world we live it???? I don't mistrust everyone I come in contact with. I am very discerning in who & what I apply my cynicism to & it IS NOT a defense mechanism. It's a serious & honest view of the world I see around me that can't be denied as being real.
http://en.wikipedia.org/wiki/Cynicism_(contemporary)

Think the way we apply it & how we present our thoughts about our cynicism may be what determines how others may see it as being a bad thing.

Just some of my thoughts on the topic.