Most people naturally assume that arrogance and an interest in honor are synonymous, but Luzzatto has a more nuanced approach. He views them quite differently.
At the end of chapter eleven, Luzzatto identifies and analyzes what he considers to be the most common character flaws: Arrogance, Anger, Jealousy, and Desire. Luzzatto then divides Desire in two - the desire for money and the desire for honor - bringing the total to five common flaws. (The "desire" discussed here is a character issue and is to be distinguished from the Yetzer HaRa for prohibited relationships. Luzzatto dealt with that problem at length at the beginning of the chapter.) By way of introduction, Luzzatto tells us that these traits all occur naturally in man and it is no small battle to get them under control.
Luzzatto thus begins his list of flaws with arrogance and ends it with the desire for honor. Interestingly, he spends more words on these two traits than on any of the others. But aren't they one and the same? What is arrogance if not an obsession with being honored?
The answer to our question can easily be found by contrasting Luzzatto's sharp definitions for these two traits. Arrogance, he writes, is thinking that you are important and deserving of praise. Honor, on the other hand, is a desire. The difference is clear. Arrogance is a way of thinking about yourself (irrational and baseless, but a way of thinking nonetheless) and the desire for honor is just that, a desire. Fundamentally, it no different than other desires, e.g., the desire for money. Desires exist irrespective of how you think about yourself.
Although it is true that arrogance can lead to an obsession with honor - Luzzatto himself described this phenomenon in his treatment of arrogance - it does not follow that any interest in honor is indicative of arrogance. It is natural for man to enjoy honor and the humble are no exception.
What an incisive insight! And what a great relief! Thank you, Luzzatto.