The dialogue in this opening is used as a quick-fire way of relaying information to the audience. Without it, we would be left in the dark and the scene would lose its awe. Firstly, the clowns discuss who the Joker is and why he is called "the Joker". None of them have a definite story, only theories. This is the first instance of the clouding of the Joker's background, which recurs throughout the film, most notably by the Joker himself. This starts a mystery of who this person really is. When the Joker is caught later in the film, the police find he has no other alias. He is simply 'The Joker' and has no personal life or background.
However, the Joker gives a hint at his past by saying "I believe whatever doesn't kill you simply makes you stranger". This is referring to the scars on his face - a chelsea grin, which is a method of killing typically used by street gangs and mobs, which suggests he's had a bad run-in with those types before. This could possibly explain why he's targeted a mob bank for his robbery.
Other bits of dialogue slowly reveal some facts about what's going on - there are 6 guys involved, they're robbing a mob bank (the joker is apparently "as crazy as they say"), and the Joker has ordered each of the clowns to kill each other in a specific order. Even through all this, the dialogue does not reveal the full extent of the plan, which is synonymous with the Joker's other plans. The method of escaping is only shown, not spoken, other than a brief mention of killing a 'bus driver'.
Good description of the technique and you have begun to explain why it has been used in this way. Focus more on specific examples (use quotes) and then talk more about what it shows you about the characters, ideas in the film as a whole and how it affects the audience. Then think about the excellence level analysis and compare it with other scenes in the film and other films in the genre. Look at my blog and the handouts for other ideas on what to include.
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