The song has a couple meanings and purposes. Some have already been mentioned, so sorry for the repetition.
First, act two is all about Phil learning to view people not just as who they are, but as important, valuable aspects of his life. Instead of writing the townspeople off as hicks and “half wit bastards,” he engages with them to learn about their lives, like he does with Ned. He has to discover how to become a participant in the world, not just existing in a place where all he can see is what he wants to, measuring time and success in what he can get from it for only himself. “Playing Nancy” introduces us to this phase in his journey. A character that seems largely one-note and stereotypical is given a chance to tell us that while in some ways she is, in other ways, she is just finding a way to survive in a world she does not have full control of. There is more to her than just her role, something Phil is unable, but will learn, to see.
Second, the song serves to contrast with Rita’s character. Rita would rather be lonely, and keep the world at arm’s length, than engage in hollow relationships with no future. Rita and Nancy are two sides of the same coin, finding different ways to fill the void in their lives left by a lack of romantic love.
They are equally sad, but by the end Rita has learned to accept that no relationship is “perfect” and she will have to find her prince in an imperfect person, namely Phil. Nancy is also given something of a possible happy ending when Larry, who seems like a good guy, shows interest in her, which will hopefully lead to a real connection and her learning to value herself and demand more from relationships than she does.
Third, it’s a meta piece about the experience of women in show business, their struggle to be valued based on more than their looks and the fight for equality in a male dominated business.
As for its placement, it has to start act two, because anytime after that it would break up the momentum of Phil’s transition from detachment from the world to engagement with, and appreciation of, it and people around him. In act one, he doesn't see them as people, we're viewing the world through Phil's eyes, so it can't go there.
I could say more, but this is long enough already.
Updated On: 6/29/17 at 04:00 PM