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For example, you can't put anything in a simple District, so if Squalor, Disease or Crime get too high, you can't combat them efficiently. They'll only offer shelter to 20 population (about 2.000 people) but nothing else.
Expanded Districts lets you add in buildings like Hospitals, Air Vents, Guard Towers, Prisons, etc. and that helps you out. You also need some Research Institutes in a few Districts to speed up your research speed in the Idea Tree (like how you'd build multiple Workshops).
So my advice is to expand a District as soon as you are able to. Especially Extraction, Food and Industrial Districts for more recource output and building slots for improvement.