Where did you get the impression that it's supposed to be a good thing in the movie? I have seen it, and I did get that impression at all.
O'Reilly insinuated that Eastwood had some kind of problem with his own daughter (in the story) and that he had let the daughter down somehow and that the girl in the story was his surrogate daughter who he decides not to let down. If that is a good thing, I guess is up to the viewer.