I think it was likely both. That conditions can diminish a human being is obvious to perceive but impossible to accept. However, if conditions don't suffice to explain, then it seems like there must be something wrong with the person themselves, not just the state of their being oppressed, & this often gets construed as contempt for "people" per se. So, by way of compassion, Morris also had contempt. But I'd say it was more like disappointment than contempt. (Which is perhaps even more provocative.)