Bagpuss, good singer/bad instrumentalist vs. bad singer/good instrumentalist question:

A lot of people are unreasonably demeaning of their own abilities as an instrumental player. The question is not how many hot licks and fancy partial chords do you know, but how well does your playing complement the rest of the music? If you can get the chords right and develop a reasonably crisp strum that is on the beat, that's a greater asset to an ensemble than someone who is trying to do stuff that is beyond their technical range.

Likewise, good musicians do the best they can with the instruments they have, including voice--it's overall musicianship people instinctively respond to, not the quality of a particular item.

I don't think you're imagining this so much as you are framing the question as if playing music were a competitive enterprise. This is a pretty common developmental phase for musicians, but true satisfaction comes from when you get past it. There will always be someone better than you at something, and someone not as good, and someone who gets more applause and vice versa. So what? YOU gotta be happy with what you do, and that will bring confidence and fellow musicians and audiences respond to that, for what its worth.

Hint: If a musician (not me, someone who hears you) offers you a constructive criticism of your playing, try to hear what they're getting at. You won't enjoy it at the time (I never do), but later on you'll appreciate it. It's nice when people tell you you're terrific, but that's not the part that helps you develop that all-important musicianship.

Willie-O