Diffraction occurs due to the behavior of waves as they pass through slits, where the wave patterns change rather than the individual molecules. The discussion emphasizes that water waves involve both transverse and longitudinal motion, which helps explain why waves can spread out after passing through an opening. Huygens' principle is highlighted as an intuitive model for understanding diffraction, suggesting that each point of a wavefront generates secondary wavelets that propagate further. The conversation also touches on the complexities of wave mechanics, indicating that a deeper understanding of differential equations is necessary for a comprehensive grasp of wave behavior. Overall, the mechanics of diffraction are rooted in the interactions of particles and their movements rather than simple up-and-down oscillations.