The discussion centers on the conservation of momentum as two boats move past each other while a man transfers from one boat to the other. It is established that the outcome of the momentum transfer depends on how the man moves between the boats, specifically whether he pushes off or steps over without exerting force. When the man moves, the momentum of the system changes due to the alteration in mass, affecting the velocities of both boats. The conversation highlights the importance of defining the system boundaries, as momentum can change without external forces if the system's mass changes. Ultimately, the problem illustrates the complexities of momentum conservation in variable mass systems.