In no way does Loki expect that Hob has always lived a good life. Even the best of people go through bad times, especially when they can live as long as Hob has. But Loki is starting to believe he knows Hob's heart and no matter what he may have done in the past, he knows he's a good man.

Once again, Loki doesn't quite realize that this same logic could be applied to himself with how Hob thinks of him, but as smart as he is, he really is bad at seeing himself. He just smiles softly, unsure of what to say to that shake of the head. He knows what Hob thinks, he just worries he's wrong. More than anything, Loki wants to live up to his expectations.

That revelation surprises Loki if only because he can't help but imagine that Hob would have his choice of anyone he wants. Then he's confused because Hob seems embarrassed by that. "Were you... worried about telling me that?" He asks gently, his curiosity evident as much as his confusion. Loki can't remember the last time he was with someone. Certainly long before the debacle around Thor's coronation. His reputation really hadn't helped him in such matters.