I think the second we judge someone else, it's extremely likely that at that precise moment we also become a hypocrite. We often judge others of the very same things we are guilty of (Romans 2:1). And since we are all guilty of some sin, or some stupidity (Romans 3:23), it makes no sense to judge those things in others. Therefore by passing judgment, we also convict ourselves. There's a double standard when we judge of others, things that we ourselves do (even if we are blind to them).
It makes sense then that the way to avoid being a hypocrite is to not judge. Because if you don't judge, there won't be a double standard that you are not living up to. So the key is to set a standard for others that you can also pass. If you pass the standard you set for others, than there is no double standard, and therefore no hypocrisy within you. I like this thought. Christ in the scriptures says to "Judge not least ye be not judged". Such few words that say so much.
I think it's possible to interact with others, observe their actions and behaviors, and perhaps disagree strongly at times, yet all the while not passing judgement on them. I'm going to attempt that.