True, but it's conditional. It's only seen as a badge of honor if you learn from your mistakes and can talk openly about what went wrong. Otherwise, you come off as defensive (and therefore insecure).
Luckily, I think a community that makes it okay to fail encourages people to not be defensive. They know they won't be labeled a "loser", that they still have a chance to make it.
I agree wholeheartedly here. I've seen that communities which shuns failure are filled with people who disguise failure and twist outcomes to make them appear as huge successes in order to achieve bragging rights and consulting gigs.
Luckily, I think a community that makes it okay to fail encourages people to not be defensive. They know they won't be labeled a "loser", that they still have a chance to make it.