In the quote from Epictetus's "Handbook," the author emphasizes the importance of cultivating the character and virtues of citizens rather than merely enhancing their material conditions. He suggests that true service to the state comes from uplifting the moral and intellectual qualities of individuals, rather than focusing solely on physical structures or wealth.
Epictetus argues that it is preferable for noble, virtuous individuals to live in modest homes than for lowly, unworthy individuals to occupy grandiose residences. This underscores the idea that the quality of one's character holds more significance than their material possessions and that society thrives when its citizens are empowered and possess strong moral values.