The discussion clarifies that while Einstein's equation E=mc^2 is often associated with atomic bombs, it does not directly contribute to their design. Instead, the equation helps estimate the energy released from the conversion of mass during nuclear fission, where the mass of fission products is less than the original atom, resulting in energy release. The equation's significance lies in its ability to describe the equivalence of mass and energy, which was pivotal in understanding the potential of nuclear reactions. However, the actual development of atomic weaponry involved extensive physics and engineering beyond this equation. Overall, a deeper understanding of how mass converts to energy in nuclear reactions remains poorly communicated in educational contexts.