We pan from the conference room to Jim, at his desk, listening to the video, unseen; he closes his eyes, ashamed for her.
Cut to Jim in Michael's office, where Michael refuses to change the award this year: "It's the best one!" Jim -- to whom, along with Ryan the Temp, Michael will always appeal for credit, legitimacy, masculinity -- protests that everyone will be "expecting it." Michael -- it's not the things he means -- whines that "Every year that Roy and Pam don't get married, it gets funnier!" Jim is not in a position to agree with this statement. On the other hand, nobody is in a position to agree with this statement. Jim looks away. "I think...if you use the same jokes it just...comes across as lazy." Bingo, and Michael buys it, and we're done. I love you, Jim Halpert. It's not the things she sees him do.
As Stanley plays with a toy car, Dwight arrives, fresh from the Ladies', full of vinegar. "Excuse me everyone, could I have your attention please? I just wanted to say that the women in this office are terrible. Especially the ones who wrote that stuff about Michael on the bathroom wall. Having a bathroom is a privilege!" Pam emerges from the conference room -- and I'd note that she has no reason to do so, except to push this further. "It is called a Ladies' Room for a reason," Dwight continues. "And if you cannot behave like ladies, well ... then you are not going to have a bathroom." Pam scoffs. "You're taking away our bathroom?" He announces that there will now be two Men's rooms.
Phyllis asks the inevitable, and Dwight (as Michael appears from his office, sick with corporate's withdrawal of interest, still trying to play both sides, as always) tells them they'll have to hold it all day. Pam informs Michael of Dwight's new decree, and that disgust and anger that only comes up when Dwight's involved crosses Michael's face. Dwight is the part of Michael that trips him up; the part he's not allowed to see and go on surviving. Dwight is the part of Michael that he's convinced himself doesn't exist, and that makes Dwight an accusation, and the more embarrassing and awkward Dwight behaves, the more painful it is for Michael to look at him.
(Michael Scott, a long time ago, but not really that long ago: "I want to be married, and have a hundred kids, so I can have a hundred friends, and no one can say no to being my friend.")