Which one is worse?

depends on if you are the singer or the observer.

i know a lot of people who are not very good singers but they think they are the cat's pajamas.


it's all about self awareness (i guess)... there are thousands upon millions of people who sing however ...with hubris that will not allow them to understand and develop, in earnest.


people who are aware of their inability to sing, seem pretty content with the fact and have no desire to improve. (which could be a better feeling, imo).
 
Ask Bono. He didn't get any thumbs up in his beginnings, as many others. Singing is a process of years and years of training for most people to do it right. I've played everything in bands and still find singing the most difficult by far.
 
Does being no good at fucking stop some one from doing it? Yell no. If you enjoy singing go to it. Your never going to find out if you can get better if you don't try.