Acharya Prashant explains that social norms and arrangements have their place in peripheral matters, such as traffic rules or house numbers, but they should not interfere with the intimate and significant aspects of life like love, joy, and freedom. He observes a common tragedy where individuals rebel against minor social rules while allowing society to dictate major life decisions like marriage and career paths. He emphasizes that whatever is truly valuable and significant must remain untouched by societal influence.