Planets in bad lajjitaadi avasthas make it impossible to be happy with the things of the houses that they impact even when the things of the houses are great. LIkewise, houses that are showing a lack in the concrete reality, are not a source of unhappiness when the avashtas are good.
But, isn't this better indicated by the Chandra/Moon-chart? At least, it seems to work quite accurately? It shows the subjective emotions and perceptions of a person with respect to the matters of a particular house as seen from the Moon, as opposed to the actual concrete reality of the house from Lagna.
After all, the Lagna chart is supposed to indicate ones concrete reality, at least to some extent, isn't it?
If difficult avasthas are formed it's because difficult combinations of planets + sign exist, which in turn affect the actual Bhava cusp. Isn't it a bit unnatural to say the concrete reality could be great, and the only problem exists in the mind?
The concrete is really not all that important. We just think it is cause we blame our psychological pain on the things. On a concrete level, there will always be hardships and imbalances in the world. People will have more, some will have less. SOme will go hungry, some will get fat. Animals in nature have this same thing. You don't see them complaining about it. They just live the experience.