"Let every soul praise Yah"
Here, Rabbi Yehuda says that all souls come from the holy body, Malchut, and dwell within humans. He speaks again of the fountains of Wisdom that emerge into 32 paths, and of the Holy Spirit, in which all the spirits are included.
Rabbi Yitzchak then tells us how profoundly moved Rabbi Shimon had been when speaking of this, and how he had told of the treasures of the supernal King, the key which is Yesod, the supernal Engravings, and the treasury of the Images (Malchut). Moses died and approached the Fiftieth Gate, we learn, without revealing these secrets to Yisrael.
This passage speaks of the paradise that is obtained by the souls of the wise after death. The joy, so fierce that it causes Rabbi Shimon to weep, is the joy of returning to paradise. It is the moment when the burden of physical existence drops forever from one's soul, when the anguish and woe is cleared from one's sobbing heart, and when everything is made eternally young and joyful again. The notion of "death" has spiritual connotations, relevant to the here and now. In the moment we choose to ascend to a higher spiritual level, our old self dies. Thus, the world to come, paradise, along with its abundant joyful treasures, pertains to the next level of spirituality which vcan lie in the very next moment, should we choose it. In this passage we do choose it. Death itself dies and paradise appears before our eyes. The burden of physical existence is lifted.