The biggest issue with personalities...
I've noticed with traits and lifestyles and even sentiments that literally all they are is occasional moodlets, they don't affect sims in any other way like how they act or how they interact with othe...
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I'm going to give them the benefit of the doubt and say that they do understand. I think there's a fundamental issue with the engine/code. While they can make sims act more in line with their traits, it's probably a bit hard because the AI is pushing sims to do other things based on their location and based on other factors (hence the team's inability to make sims consistently (across everyone's machines) sit down and eat at restaurants in Dine Out).
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