Genuine happiness consists not in pleasurable feelings but instead in one's sense of approval of one's character and projects.
Conclusion (thus)
The happy life tends to be the good life (the morally virtuous life).
Evidence
Happiness consists in one's sense of approval of one's character and projects.
Evaluate
The author has a couple moments here where she says, "defined not as X, but as Y". We should focus more on how she is defining things than on how she isn't.
According to the evidence, "the happy life" would be one where one approves of one's character and projects.
According to the conclusion, "the happy life" is a morally virtuous life.
So it seems like the author is assuming some missing link between "approving of your character and projects" and "being morally virtuous".
Goal
Look for something like .