I think that's good advice in general, but you'll miss the point if you stick too closely to it. You kind of have to weight your judgments. I mean, yes, a guy who beats his wife if he's had a bad day at work should be judged pretty harshly based on that. But if you-at-your-worst is somebody who is kind of grumpy and maybe a little bit selfish, you're a whole lot better than somebody who constantly acts like a crabby miser.
[1]: http://en.wikiquote.org/wiki/John_Dalberg-Acton,_1st_Baron_A...