The happy display tells most of the story. The game developers were not quite consistent in their implementation of double unhappy citizens (the red ones).
It may not be immediately obvious from the resources box, but the city is only generating 10 diamonds. This turns 5 double unhappy citizens happy (as though they started out content). Had they acted as true double unhappy people, one would expect only 2 of them to be influenced by the luxuries. 6 diamonds to make the first one happy and the other 4 to make the next one content. But red shirts are as good as blue when it comes to the application of luxuries. I have been exploiting this effect so long, I have almost forgotten that it is an anomaly.
There's no effect from the military or buildings, so the next thing that affects happiness is wonders. In this case, the city benefits from both Bach's Cathedral and The Cure. The effect here is what you would expect. The Cathedral makes one double unhappy content and The Cure makes him happy.