I don't really agree. The dictionary definition of cynical is "believing the worst of human nature and motives; having a sneering disbelief in e.g. selflessness of others".
That's certainly very extreme, but a tempered, measured belief in the negative aspects of human nature is necessary, I think.
You might say, "that's just realism", but I think they are just separate axes: some amount of cynicism (and idealism) is necessary in order to be realistic. Possibly different amounts in different contexts, depending on the other people involved.
Humans are unavoidable optimists and (sadly) the only sustainable approach is to assume the worst of everyone.
Then when they eventually outdo even your worst expectations, you will be less disappointed by the gap between your original impression and the fresh dose of reality. I've adopted a motto that I could finally put words on about a decade ago. "You are not cynical enough."
And no, not even after accounting for the above.