Yep! That's exactly what it means. 😄 I have to keep an eye on my hunger, fatigue, and how cold my person is. Different armours have different warmth ratings, certain food is better than other food all with their own hunger satiation, and have to sleep or be too tired to do anything.
Depending on how cold you are, you health is reduced and your mana is limited. And if you're too fatigued, your stamina is limited.
Also you can't level up until you sleep at night. The first night my character went to sleep, she rose 4 levels. 😅
That is a fascinating change to the game. What an interesting mod. It's pretty cool to think that you can get rewarded so tremendously for sleeping -- but it makes sense since sleep is very important in regular life as well. Skyrim mods are just becoming more and more incredible. Cold affecting mana is interesting but I like the idea of different armors having different warmth ratings, truly adds new levels of experience to an already great game.