I think we tell them in our own ways. I'm watching Spark'd too and yes I kind of do what some of them do but in no way can I or would I want to build a complete story that quickly.
I build a backstory first sometimes even before I open the game in my head. It can be my own or inspired by a movie/tv show/other games. Then I make my sims, give them the traits that fit the best. Outfit them character wise. If it's rags to riches I just put them in one of the houses they can afford or create a lot in the game budget. If they have a story of coming from money or at least not starting from scratch then I'll use real estate cheats.
Then it just goes. I don't usually cheat skills so the first few sims days to a sim week or so are usually spent getting their basic skills in for their character. After than I usually go more into a story mode. I'll live out their lives with a certain mindset, sometimes day to day. They could be normal sims just going to work/job.... or I might have some deeper or more often more deviant story to tell with them.
For instance I've been playing Don Lothario lately .. the Sims 2 version. In that game he was in the health care field so much of my gameplay has been spent giving him some charm and skills to do okay in his job and getting him stable. Now I've introduced the maid (changed the one that showed up in CAS to the Sims 2 one). He's busy romancing basically any woman that is attractive that he can. I'm pretty sure we are going to have some broken hearts and marriages by the time his story ends (if it ever does). A lot of my stories though do use a lot of actual game play, so I can see him making use of romantic getaway vacations ect to pursue what he wants while not getting caught if he can help it.
I have many other sims in that save from Sims 1 and 2 and their lives are becoming interconnected. Some .. especially my Strangerville sims are up to some bad stuff... test subjects, cloning just lots of stuff. Then other families are just living, working and being their character.
I have taken a break though to introduce knitting to Ginia Kat and that story is just ..sweet. She just moved in her butler. They have 6 cats and the relationship is romantic now. Mostly they do the home skills and it's enjoyable if not dramatic to watch and play out.