The discussion centers on the confusion surrounding the composition of functions, specifically regarding the notation f o g = (lambda)x.x and its implications for inverses. Participants express uncertainty about the definitions of lambda calculus elements, such as the meaning of x and the dot notation. There is a consensus that f o g is not a valid function under standard composition rules, which read from right to left. Additionally, the concept of an inverse function is clarified, emphasizing that if f has an inverse, it should be denoted as f^-1: B->A, not as g. Overall, the conversation highlights the complexities and misunderstandings in function composition and notation in mathematical contexts.