I am torn between believing that students need to learn about self-esteem and that students need to get past the idea of it. 

On one hand, I see students who have been knocked down by life, told by parents that they are dumb and bullied by peers.  Those students need to see self-value and self-worth.  They need a positive note, some practical positive feedback on their work and a sense of security in a classroom.  School, for them, needs to be a safe haven. 

On the other hand, I am leery of the emphasis on self-esteem.  After awhile, it gets selfish (even the term "myspace" jars me a bit).  What about "others-esteem?"  What if the solution is learning how to show some esteem and respect for the community? 

I'm not sure what the solution is.  There is a part of me that thinks service learning helps.  This way, they learn others-esteem and have more of a reason to feel better about themselves.  When a student helps others out, the sense of self-efficacy and self-respect seem to flow naturally from the act of selflessness.