When writing film scripts, is "on the nose" dialogue really that bad?

One of the rules of screenwriting is to avoid "on the nose" dialogue, which is where the characters express themselves with words saying exactly how they are feeling. It is said to sound too stupid on screen. But I swear, even in movies such as "Pulp Fiction", which has been praised for its... show more One of the rules of screenwriting is to avoid "on the nose" dialogue, which is where the characters express themselves with words saying exactly how they are feeling. It is said to sound too stupid on screen. But I swear, even in movies such as "Pulp Fiction", which has been praised for its great dilogue, the characters have frequent lines in which they express to other characters their true emotions and opinions.
Is on the nose dialogue really that bad? Or have I just completely misunderstood what it is?
If there are any screenwriters with experience (or not, I dont really mind) your answers would be much appreciated.
Thanks.
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