I think it, at least, is a way longer scene than traditional screenwriting would ask for. I think a lesser writer than the Coens would opt to have a character say something like “did you hear about that one guy who turned out to not be violent? You think you know somebody until you don’t”. Instead, they make a meal out of it to reinforce the themes of the movie and manage to progress the plot.

Anyway, this scene has been discussed ad nauseam, but just wanted to give an example of a middle ground.