Darryl, don't be disheartened.
Pretty much everywhere I go to play, there is someone who can do something better than me, if not play everything better than me. (Not to imply that that is a surprise because I'm some great player or anything.)
I think that if we play only to be or become the best, we are missing something. I play because I enjoy playing. I do think one has to achieve a certain minimum skill level so that you can actually enjoy playing. But once you are to that point, then the fun begins. I can do a few things well enough to satisfy myself and enjoy myself. Will I ever play like those kids, or Chet Atkins, or Tommy Emmanuel, or Doyle Dykes, or countless other musical geniouses? No. Never.
I play because I enjoy making music. I can express my emotions in my music that I can't express well with words. When our beloved dog died, I composed a song. When my daughter got married, I composed a song. When I feel sad or depressed I can play some songs. When I feel happy and elated I can play some songs. Maybe the same songs, just played differently. I can play those songs that I composed and be taken back to the fond memories of our dog with our kids and the excitement and significance of the wedding.
I don't play "for" other prople. If other people hear what I play and like it, so be it. If other people hear what I play and don't like it, so be it. I play for me. Not out of selfishness, but just because it is part of who I am. There would be a hole in me without being able to play.
I'm sure that some people do play "for" others, especially those who make a living at playing. I'm not knocking that. But not everyone has the synapses firing in the brain and finger dexterity to be on a playing level with "the best"; and never will.
So for those of us who don't play like those kids or our own private guitar heroes, we can play just because we love to play. We can buy the cheapest guitar or the most expensive guitar, and just play because we love to play.