Missing Emotion
Just an observation, but I've noticed an oddly missing emotional state. Fear. There's a Decoration item called "Don't Fear the Reagnomper" though, for some reason, when the Grim Reaper shows up, no on...
Forum Discussion
I would say that fear would be best dealt with by going away from it. Then again, intense fears could also possibly be slowly overcome by exposure. That seems the most realistic approach. Perhaps not the most convenient, but certainly realistic. I think the power of a fear moodlet could be adjusted accordingly. +1or +2 for mild fears, higher for more intense ones. It could even stack from "Afraid" to "Very Afraid" to "Terrified". Sims could even potentially be, literally, scared to death. The Book of Chaos even does this, after a fashion. If you use the "Scare" option, it's just like the Mischief interaction except that it gives the Sim a fatal heart attack.
