The discussion focuses on proving that the function f(x,y) = |xy| is differentiable at the point (0,0). Participants clarify that while the absolute value function is not differentiable at one dimension, the multivariable case requires a different approach. The use of polar coordinates is suggested to analyze the limit as (x,y) approaches (0,0), specifically showing that lim |xy|/sqrt(x^2+y^2) = 0. There is confusion about the definition of differentiability in higher dimensions, but it is acknowledged that the matrix A can be set to zero to satisfy the conditions for differentiability. Overall, the conversation emphasizes the need to carefully apply the definitions and consider the function's behavior near the origin.