That is but gobbledegook for man knows what is good and what is evil, all right. Man IS, by nature, evil, therefore you see the crimes committed in the world today. Indulging in evil desires that satisfy lusts, and thereby deliver happiness, is downright sin.
No, read what I said, let it marinate, and think about what I said. When a child is born it know not what good nor evil is, it know what may feel good. MAN learns what is good or evil. It is what Society and religion teach him. That is why there is punishment for those who do evil. And is given to a child who does wrong, punishment---so it then learns what is wrong, or good and evil.
Evil doesn't mean satisfying lusts, per se, but a indulgence . Take all that mess you talk about, take all the parables ou of the Bible, Torah, Quran, and what you have is "moderation", everything done in moderation...moderation is the median, not the extreme, in essence moderation is balance.
Man is a spiritual, cognetive, and yes physical (sexual) being...a balance of all three is what is necessay. Please read first what I wrote.