Meaningful stories will add meaningful moods where your sims are going to have their emotions be more varied and much more subtle and specific moods are able to boost others. You aren’t going to be embarrassed for 8 hours after seeing someone on the toilet. The way it works currently in the vanilla game is that the emotions are constantly flopping just because your sim entered a well decorated room or walked in on someone using the bathroom but this isn’t how emotions work IRL.
With the meaningful stories mod you can have a completely redesign this emotions system that make your sim’s feel more human.
When The Sims 4 was released they had a lot of their marketing material focused on smarter sims and especially on this emotions system that seems to be a flop a few years later.