Enjoying catching up on this discussion.
One thing I haven't seen mentioned yet was in regards to Kathy in the revision. Best mentioned the balance of the girls during Another 100 People--it should be pointed out that Kathy's scenes is almost completely re-written as she basically had no scene originally. It may have been added to give her more to do if Tick Tock is cut (though that first revision didn't cut Tick-Tock since Charlotte D'Amboise played the role.)
I've said it way too much, but for the most part I prefer the original script (even the MUCH meaner Joanne,) but I much prefer Kathy's new scene (I also like the "gay" scene.) Getting back to the gay thing, I believe the production Sondheim actually had closed down was one in Seattle where they made the entire cast (I think) gay, not just Bobby.
Anyway, here's the info on the Kathy scene changes (taken from this great online article that lists all the changes--I think people often don't realize that the revised Company changed in many ways as much as Follies, though thankfully, like with Follies, they seem to be incorporating more and more of the original script--
http://www.sondheim.com/commentary/company_rewritten_1.html )
The scene with Kathy is something else again. In the original script, Kathy was something of a cipher, coming on to say she's going, and then going. I suppose there had to be some justification for having a trio of girlfriends, one of whom had to be a really terrific dancer who could make Tick Tock work in the second act. But it was a nothing scene, just taking up time until Marta caught her breath for her third round with her song.
No more. Now, it is a full-fledged scene. Kathy has brought Robert to this quiet little pocket park she's found "in the middle of the busy, noisy East Fifties" rather than go to a big party as he had planned. She compares herself to the park, out of place.
(As he leans in to kiss her she closes her eyes, but he only kisses her forehead in a brotherly way; she expected more)
They discover that they had both thought of marrying each other, and don't understand why they became friends instead. She then tells him of her impending move back to Cape Cod, in order to get married.
Robert: The problem is you want too little. That's the hardest thing in the world to get. (Pause) Thank you for your park.
Kathy: You're welcome. But, see, it and I, we just don't fit. I think there's a time to come to New York and a time to leave. Enjoy your party. (And she is gone)
It is as close to perfect a scene as is possible. Kathy now has character. Thank you, Mr. Furth, for recreating her.