Yes, I've read Chestnut. I find her words on 8s to be lacking and show a lack of understanding on her part. She parrots Naranjo without much elaboration.
I've read two of Palmer's books which I find very insightful. She points to stimulation as a bi-product of inner deadening, but not the reason for pain itself. Indeed, as naranjo and mairi point out, it's the sense of having been wronged that is the source of suffering.
The dominant instinct is your point of insecurity and neurosis; the link you provided initially led me to type as sp/sx. I had to think about that one.
Have you read Jerome Wagner's stuff? I find his ideas on self image to be most informative.