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How is it that Jesus who lived a perfect life in every possible way did not experience total outward success? Why does his life on earth not look like a tree planted beside the waters? He died a cruel and unjust death. How does that square with the psalm?

First of all Jesus went through the valley of the shadow of death for us, carrying our sin to the cross. He took on the consequences of our wickedness, sin, and scoffing. But God raised him from the dead, and exalted him above all. The ultimate fulfillment of this Psalm is connected to Jesus. Through faith in him we will be exalted in glory with him forever.