I feel it's the latter. We see the world through our own eyes, and while the world itself and everything in it influences how we do see it, the way we interrupt it is specialized to each one of us.
We have no idea what is truly going on in other people's head, and I am sure everyone can think of a long list of thoughts or ideas or random whatever that has crossed their mind that they never have, and never will share. But the only thing we do know is what goes through our own mind. So we assume and worry that it is how everyone else thinks too. I'm thinking about the clothes she wears, everyone must be thinking about the clothes I wear. Her posture, his muscles, their house, their kids, their car, the jokes they make, the sound of their voice.
I may have been able to explain that better but I think you'll get the gist.
So, Dear Coyote,
Is changing our thoughts about others the first step to changing our thoughts about ourselves? If we want to stop feeling judged, must we first stop judging others? If we want to stop feeling unattractive, do we need to change how we view others as attractive? If we want to feel less awkward, do we need to stop defining things others do as awkward so readily?