Seeing/hearing others play shows me what is POSSIBLE. That if another human can do it, maybe so can I.
Desire, commitment and amount of practice existing in varying degrees as per 'free time' (what's that?) allowed gets me improving along the way.
Back when I was first, very seriously guitarded (as a teenager), Eddie Van Halen was an inspiration for a while, especially the song 'Eruption', which involves very fast hammer-ons and pull-offs. I had a second hand, poorly set-up, bad sounding electric guitar (all though I did not know it at the time) with the action almost 3/8" at the 12th fret, but I was going to play and sound like that song or die trying. At some point I got an 'overdrive' effect pedal and realized that if I cranked the 5-watt Sears amplifier to '11' and set the pedal to maximum, (much to the chagrin of my parents) I could get my guitar close enough. After about an hour per day of 'practice' for about a month, I could play it (by ear), and even if some of the notes were not exact, it was close enough. By that time, the infatuation with that technique and sound had lost it's shiny appeal, and I moved on to other things afterward (Queen, The Police, The Cars, U2, Genesis).
What the experience taught me is that you can learn and figure out anything, but you have to
WANT to do it, and you have to
put in the time required to master it. Progress comes slow, and can be frustrating. Too often folks get discouraged and give up easily, just before a break-through or epiphany. I've learned that right when you feel all hope is lost, you are just about to turn the corner, and have less friction, and that you have to keep at it, and keep at it until you do. Commitment to this goal is of paramount importance. Otherwise, it gets shoved into the 'someday box' or the 'I will never box'.
... I figure that if I can improve just a smidgen every day, I'm narrowing that gap between them and me, and that keeps me moving forward.
I've never found comparing myself to others to be useful in any way, so - I just try to avoid it. Hearing good music, well played, in general (not just ukulele) is always an inspiration, but I don't measure myself against it.
... Just made me realize I need to practice more. There are songs I can play now that I would have considered impossible , but practice practice practice and more practice and now I can do it. A new instrument has always made me practice more.
If that's what you think, then you're right. You'll never ever be that good. Might as well eat worms and die now, right? ...
The words above from our fellow UU brethren are wise words indeed, and are examples of the fact that perseverance pays off.
When I first started with the ukulele, Jake was (and still is) a huge inspiration to me. One of his songs that I wanted to play was 'Piano Forte' but I had real trouble with the 7-fret stretch required for some of the notes (on a tenor), and realized that I had to get my fingers in shape to be able to make this happen. I set about exploring these kinds of chord and scale textures, and wrote a few of my own songs having a huge stretch like that. With it being my OWN music, it was easier to practice without getting frustrated or disenchanted, and became an EXPLORATION of the fretboard.
Now, about a year later, with better manual dexterity, I am ready to approach that song again and set myself to be able to play it.
@D-U-D, As far as banjo goes, maybe you should do a YouTube search for Bela Fleck, who is regarded by many as an accessible yet master musician, and plays banjo in many different styles, and maybe by exploring his music, those banjo techniques will not seem so intimidating for you?