When I was doing therapy, a key component was extending loving kindness to others (I called it rapport, but it really was akin to "loving kindness"). Wounded souls can heal with love. As you said, this love didn't mean that I would overlook the negative, it meant accepting the person as they were in that moment knowing there was potential for growth.

I'm working on practicing loving kindness with myself. That is a little trickier for me, but getting easier with practice. : )