I also found this scene a bit gratuitous and longer than necessary. I have watched this episode several times and the conversation between the two women referenced Nucky having seen them together. Angela says that Nucky didn't get to be where he is by being a fool or naive or something like that. She says that he suspects something and brings up the fact that he is giving her money. I assume that he is doing it because he made Jimmy leave Atlantic City. He has a close relationship with both Gillian and Jimmy, so it would make sense that he would want to take care of Angela and the child.
Her lover then mentions someone in Greenwich Village who has shown interest in her artwork, bringing up the possibility of moving and finding more lucrative opportunities and getting away from Atlantic City and any suspicions about them.
I have to believe that this can only end badly. This was something that was totally unacceptable in 1920. I am wondering if somehow Jimmy will find out. We also saw Jimmy sending money to Angela in this episode, but she didn't appear to have received it. Gillian either learned from Nucky about the two of them, or was just smart enough to figure it out for herself. Now I finally understand why she offered to take care of the child and mentioned Angela's "bohemian" lifestyle. I guess that was the code word for lesbianism.
I would think that Angela could lose her son over something like this. What if Jimmy finds out? He thought she was having an affair with the photographer! This is even worse.
I do love this show and am thrilled that it's being covered by this site. I have been dying to find a place to chat about it. I am utterly hooked on it!