Students are people, and people respond in kind to the way you treat them. If you treat your students with respect, they will be more likely to treat you and their peers with respect.That's the first part of the quote. As with any principle, it must be tempered with another principle.
Like it or not, you are an authority figure. With authority comes responsibility, the responsibility to set an example for your students. Hold yourself to the highest ethics and morals, or find another job.It's useful also to understand the self-selection argument offered here.
Just because "we" as faculty were of a certain sort as undergrads does not mean we should expect all, or even most, of our undergrads to be of that sort. Were our fellow undergrads as eager and enthusiastic and full of initiative as we were?Go. Read. Understand.