What is the significance of the song “merrily, merrily” which 8Handz hears in his headset?

At first Felix thinks that it is from the Tempest: “Merrily, merrily, will I live now, Under the blossom that hangs on the bough”; 8Handz says that it was from the children’s song, “Merrily, merrily, life is but a dream”—this a song Felix sang to Miranda when she was three (245).