- establishes male-dominated nature of Indian and filmy society, where women are constantly degraded as commodities, particularly in all-male banter,
- establishes RK's own viewing of Madhubala for his public persona,
- shows the confusion and unresolved nature of RK's own relationship with his wife. He is irritated when she is insulted, but is not self-aware enough at this stage to know the reason for this, however he may justify it to Kutta and to himself as some sort of ownership ritual.
All in all, two minutes of great background and character development. so much better than endless tears and speeches.