It means the torque converter will theoretically allow the engine to reach 2,500RPM before the engine "stalls" and RPM will not increase beyond 2,500RPM.
The stall speed depends upon variables that influence the stall speed. Engine torque affects stall at the front end and vehicle weight and rear gear ratio affect it at the back end. And unless you use a trans brake it's unlikely you would reach a rated stall speed. This just means that rated stall speeds just allow you to roughly compare one converter against another. It's not quite that simple, but you have to start somewhere.
What it means for you, though, is that the engine will be able to get into a better part of the torque curve to help launch the vehicle. So, for instance, if you had a cam that started to get into its torque band at 2,500RPM, you'd have more torque available at the instant of launch than if your converter stalled at 1,600RPM. That doesn't mean much if you're not drag racing but a looser converter can make a vehicle with a bigger cam a little easier to drive. Such as not pulling through the brakes while waiting at a traffic light, having a smoother takeoff from a stop light, having a higher idle rpm to help with engine vacuum or idle stability.
I have nothing to offer on the quality of TCI transmissions. You can spend more but you just never know, really.