I've lived in Hollywood, and the theme of that movie is the epitome of the entire attitude there. Every single last person thinks they're going to make it, and every last person thinks that they'll do some plays, some cattle calls, some bit parts, and when they've made it that far - they will become famous. Or make their own smash hit production.
The easy part about making your own production is that everyone and their dog will audition. When I was living there, this guy named David Allen used to pay half the rent to come out once a month and audition for commercials. Dave did one of the early Pepto Bismal commercials, and it paid him so much in residuals that he bought a house out in the suburbs and did a bunch of bit parts. Three of us paid the other half of the rent, and one guy kept doing any kind of acting part that he could - he did a couple of plays and got a twenty second clip on Playboy channel as a guy sponging down a bus.
Anyhow, David Allen decided to advertise for his own little production, and he got so many resumes that he had to buy three or four filing cabinets - the tall kind with four drawers - and there were still about ten boxes of them that he didn't go through. He even got nude photos from some of the women applying, and none of the parts called for it.
Hollywood is one giant rat trap of people trying to get acting parts and become famous. The guy in this movie is practically living the Hollywood dream.