I think there needs to be a balanced approach with praise and building self esteem though, I think sometimes if we build our kids up too much, they struggle when they fail or don't achieve something because they miss out on much wanted praise. I've seen this at work with some of the young kids that start - they are almost incapable of accepting constructive feedback or coaching and react very emotionally. I think we do our kids a disservice if we don't teach them how to accept praise and constructive criticism, they are both life skills, and obviously they need to be age appropriate but the foundation we set at an early age will be the legacy we give them.
My nieces - beautiful girls, clever, bright, much adored etc lack compassion for others because their parents have always told them how wonderful they are, and how clever they are, and how advanced they are, how hard working they are etc etc but given this message in the way of 'compared to <enter name here>'. They have a massive superiority complex. It's an ugly behaviour to observe in young girls.
I think building self esteem is a very important role of a parent - but we just need to be mindful of how we deliver this message to our kids. You can never say "I love you" or "Thank you" or "I'm proud of you" too often, but I think the praise needs to be genuine and not over the top (eg constant "Good Boy" for everything)
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