Kate asks Mikhail why the Others stay on the island if they have a way off it. Mikhail says that Kate, Locke and Sayid would not understand because they are flawed. They are not on the "list" because they are angry (looking at Locke), and weak and frightened (looking at Sayid).
Kate inquires Mikhail about why the Others remain on the island if they possess a means of escape. Mikhail responds that Kate, Locke, and Sayid would not comprehend because they are defective. They are excluded from the "list" due to their anger (glancing at Locke), weakness, and fear (gazing at Sayid).