The opening image of the chapter is a road, and it is one of the few places where the book uses its central word in something close to its ordinary sense.
Dao is an everyday noun meaning a road, a route or a way of going, and the chapter exploits that. The great way is described as very level, which is the plainest possible recommendation of it: an easy, wide, well-graded road that requires no skill to walk. And yet people love the byways, the small side paths that are harder, longer and more interesting.
What that image proposes is a diagnosis rather than a metaphysics. The difficulty with the way is not that it is hidden or hard, since the chapter says it is neither. The difficulty is that it is dull, and that human beings reliably prefer the interesting detour. Chapter thirty-five had already conceded the same point in different terms when it said that music and food stop a traveller while the way put into words is bland.
The speaker's stated fear is worth noticing too. Walking the great way, my only fear would be of straying. Not of hardship, not of enemies, not of failure, but of wandering off a road that presents no obstacle. The book rarely admits to fear, and the thing feared here is the ordinary drift of attention.
That framing is what makes the second half land. The rulers in embroidered clothes are not villains from outside the argument. They are the same traveller, further along the byway, and the chapter's judgement on them is the judgement it has already passed on a general human preference.