It was quite a piece @dedicatedguy, this just reminded me of the looking glass self, the part which try to see through the eyes of others, only this time doing it for others.
I agree with you that this can limit someone's achievement, even as a person, giving much concern to what people think is not all on the positive as it can make us do less with regards to what we can achieve.
RE: Understanding vicarious embarrassment. Feeling shame for others.