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He thinks they are beautiful simple people. He finds himself hideous in his reflection.
From the text:
"I had admired the perfect forms of my cottagers -- their grace, beauty, and delicate complexions: but how was I terrified when I viewed myself in a transparent pool! At first I started back, unable to believe that it was indeed I who was reflected in the mirror; and when I became fully convinced that I was in reality the monster that I am, I was filled with the bitterest sensations of despondence and mortification. Alas! I did not yet entirely know the fatal effects of this miserable deformity."
