Can depression and low self esteem be avoided when people are suffering chronic physical pain, and often housebound?

Yes. Some people are just disgustingly j/k good natured. Whether it is based on their religion or because this is better than what was for them or drugs - prescribed of course) it happens.

Everyone has totally different ways of dealing with serious personal issues such as pain and debilitating illness. Often other interests such as music, art, and other kinds creativity can divert people from inwardly focusing and becoming obsessed with how bad their life is. After all, fairly simple problems can make some people fall apart and others who have major issues seem to just work around the problems and get on with what is important about life.

Absolutely! I have seen many people struggle with health problems and have a fantastic attitude towards life. I very much admire them. I don't know that I would be able to psychologically handle some of the things they go through and remain as strong.