Good answer! I tend to think of it as being happy with your own abilities without feeling the need to disparage other people's, which I suppose is sort of the same thing. Acknowledging one's abilities and being grateful for them without being inclined to brag is another element.
I like your defs. I would define "confidence" as knowing exactly what you are, accepting exactly what you are, and acting in accordance with that fact. "Arrogance" on the other hand imaging yourself to be greater and other than what you are, accepting that false image as fact, and acting in accordance with this fallacy.
That's a pretty good way of looking at it too. Really it's an issue of understanding yourself realistically, not underestimating or overestimating yourself.
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