Glad you found something that is working for you. You don't want to get down on yourself...nothing good will come of it. The key is to find something to play to make you feel good about yourself.

If you find yourself struggling with this again, you might also seek improving your attitude about yourself outside of the guitar. Do something else that you enjoy that makes you feel good about yourself...whatever it is.

Regarding improving improvisation - I struggle with this too. I believe EVERYBODY does. I got through my barrier by going through the blues lessons, specifically the ones where Anders talks about and demonstrates phrasing. I still have work to do of course, but it's given me a new focus, a focus away from scales and notes. My solos still sound amateurish to my ears, but much less so than before. I have confidence now that if I was put on the spot to throw a blues solo together, I could do it and sound like I know what I'm doing. It's progress, which is all I can ask of myself.