Yeah, it's actually very well thought out, source: trust me bro.
The basic idea is that these are social situations so there is a core situation - for example, a threatening situation - and then there are moment-to-moment opportunities - for example, to bring up money or sex appeal in a threatening situation.
If you do two moment-to-moment opportunities that match back to back, they change the core mood. And you can reorder the moment-to-moment opportunities, so it's sometimes quite possible to choose whether to change moods or not.
I think it has SOME promise, but it clearly needs reworking. I'm thinking maybe just three things instead of five, and maybe the enemy actions are always simply locked to the current mood rather than having moment-to-moment opportunities for them.