I'm going to go out on a limb and say that it was all three. The scene was reinforcing the point that, once talented people like Francisco d'Anconia are out of the picture, they end up getting replaced with people like Tinky Holloway and Wesley Mouch.
The book also points out its effect on Hank Reardon, who agreed to quit and disappear shortly after this meeting (and largely as a _result_ of this meeting, once he realized that he was enabling the Looters to continue in their behavior).