I think what Cakemaniac is talking about is the moodlet that can be gotten from being near decorations, which gives between +1 and +3 happy. I'm not certain of this, but it seems to affect a similar area as the emotional auras. When I used to play Sims that lived indoors, I noticed that the decorated moodlets sometimes changed when I changed the shape of the room. I never figured out why it worked this way. Now my Sims live mostly outdoors, and I haven't seen any strange issues with the decorated moodlets recently.