Avraham Avinu even cared for Sedom!? In Slabodka they explained that an Ayin Tova person sees only good. His very glasses see only good, and as a result, he does Chesed and respects everyone. He loves Torah, like Dovid who recognized the greatness and utter goodness of Torah, and this made his sing so much.
An Ayin Tova person loves and respects everyone. He enjoys Hashem’s world and its people. In his eyes, everyone is a Tzaddik until proven otherwise. And even then, he tries to defend even the worst people. An Ayin Hara though, looks down at everyone until proven innocent; and even then, he insists that deep-down the person is bad.
Ayin Tova on yourself is #1. If a Rebbe has an Ayin Tova on his class but not on himself, then the kids will detect his weakness and step all over him. But if he is full of self-aggrandizement, and he believes in himself, then they will respect him. When you appreciate yourself, then you thank Hashem, and you are a true Baal Hoda'ah.