I think sometimes we demonize ourselves for our troubles for the same reason that other people do it to us; we demonize what we don't fully understand and are not sure we have means to fully deal with, but because we have fight in us we objectify ourselves as the source, to give ourselves a way to do battle, albeit an ineffective one. We battle ourselves, to allow ourselves to be in some kind of action.. it's like any anti-biotic gone wrong.

And it becomes even more diffused from other people; when they're not sure what there is to demonize in what they don't understand in others, they thusly demonize an even more nebulous enemy, but one which still represents their own struggle with inner demons, and they are swinging even more blindly in the dark.

Luckily, people do tend to respond to what we give them, so when we expect the best of them we quite often get it. Pretty much everyone (correction: everyone) is walking around in some variety of altered perception of life.