I don't think they were supposed to be doing anything in particular, they were just sort of a placeholder for the generic overfunded web startup during the peak of the bubble.
"E is the highway, not the vehicle, we do not need traction." Well I would assume a highway is definitely built for vehicles, hence needs the traction to justify the investment.
Its about a VC funded startup with little revenue that goes bust.
It was a pretty terrible movie though and the web2.0 talk will make you cringe.