The entire content is rather drafty, but I am especially baffled with the last comment "and thus produces an image manifold that is a diffeomorphic copy of $X$ adjacent to the original." This sentence does not make sense to me, like why we suddenly discuss original, why it is this case, and why this matter?
$\quad$We must deal with the necessity of deforming $X$ in a mathematically precise manner. Attempting to define deformations of arbitrary point sets in $Y$ is hopeless, so we shift our point of view somewhat. Considering $X$ as an abstract manifold and its inclusion mapping $i:X\hookrightarrow Y$ simply as an embedding, we know how to deform $i$, namely by homotopy. Since embeddings form a stable class of mappings, any small homotopy of $i$ gives us another embedding $X\to Y$ and thus produces an image manifold that is a diffeomorphic copy of $X$ adjacent to the original.
