In Bhagawad Gita Chapter 1, Verse 27, Arjuna's state is mentioned as below:
tan samiksya sa kaunteyah
sarvan bandhun avasthitan
visidann idam abravit
Krpaya is key here. Kripe means mercy (infact translated as compassion as well). Mercy can be from the more powerful to the less powerful ones. The less powerful ones cannot show Kripa to higher ones. So there is an implicit state of Arjuna where he thinks that he is above those on the other side. This is reflected in several statements of Arjuna in prior sholkas, for example Ratham sthapaya me achyuta; kair maya saha yoddhavyam etc.
Chap 1, 28: "drstvemam sva-janam krsna"
-- Arjuna can see only his personal relatives.