Empathy is the word of the times so it gets used where it's wholly inappropriate.
good faith just means you assume the person is earnest in trying to make the project you're on successful. Part of that is understanding that people say stupid shit, but the other part is trust.
One of the reasons my current employer is so sticky is that it's a billion dollar company and I've only met 2 people whom I won't accept in good faith, everyone else is earnest even when they disagree with you.