When I did the Cabbage Patch story, there were three things I wanted to deal with and one of them had to do with this scene:
1. To confirm, that in this universe, Selina is Terry's mother. 2. How Bruce got Terry. 3. To show how Terry was able to recognize Selina in 'Rivalry', because he is shown and told (many times)who she is. Terry doesn't fully understand her role in his life yet, but thanks to his father, he does know she's 'Ma-ma'.