The discussion clarifies that the relationship dx/dy = x/y is not universally valid, particularly when considering functions like y = x^2, where dy/dx does not equal y/x. It emphasizes the importance of understanding the conditions under which this relationship holds true. The conversation also highlights the distinction between secant and tangent lines, explaining that the secant line's slope represents an average rate of change, while the tangent line's slope reflects an instantaneous rate of change. Counter-examples are provided to illustrate the limitations of applying this formula. Overall, the use of dx/dy = x/y is conditional and requires careful consideration of the specific function involved.