To the truly balanced entity no situation would be emotionally charged.

[Meerie]

Reminds me of a story about a Zen master.

During a war the city in which his monastery stands is occupied by the enemy. Like the civilians all the monks flee the city. But the master does not change his daily ritual. As the fighting goes on around him he sits in his garden drinking tea.

A soldier jumps over the fence and points his sword at the master shouting some threat. The master continues drinking his tea. The soldier menacingly comes closer and asks "You fool, don't you understand the man before you could kill you without blinking an eye?"

To which the monk replies. "Do you not understand you stand before a man who can be killed without blinking an eye?"

I'm a little confused about the moral of this story. What does it mean exactly? On the surface it seems that disassociating ones self from other people and / or events happening around oneself, to the point of your own physical death, is somehow a good thing? I think I'm missing something.

I think it means that when he was initiated / enlightened, he lost all fear, including that of death. So to him it simply is not important anymore, whether he lives or dies, since death is just the doorway to something else, anyways.
He simply does not feel the need to run for his life, and wants to continue being in the moment, which he does by sipping his tea.
(I am imagining the face of the soldier right now, lol... I bet the soldier let him live. Such calmth and fearlessness is pretty impressive, isn't it?)