Re: the embarrassment phenomenon
I get this too. I put it down to empathy - I figure that I am subconsciously putting myself in their shoes. Presumably the next guy doesn't, dunno which I'd prefer to be, both have their pros and cons.
I used to think this was a lack of confidence somewhere, which is kind of weird as lack of confidence isn't exactly a big problem of mine. However, I think it's quite common to over empathise with someone and thus be less sure of your own stance, so it's the same thing really.
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