Chapter 2 of 'User Stories Applied' outlines six essential attributes of good user stories: they should be independent, negotiable, valuable, estimable, small, and testable. The chapter emphasizes the importance of clear communication between product owners and developers, as well as the need to negotiate details and considerations for prioritization and size when creating stories. Additionally, it highlights the significance of testable outcomes for validating story fulfillment and suggests methods for effectively splitting or combining stories based on their complexity and size.