Since this didn't even happen in the book, it's all open to speculation, but perhaps the most important aspect of this scene is its appeal to a sense of romanticism, something that was -- to the filmmakers, or the studio -- evidently necessary at the time.
I prefer to read Todd's placing the flower in the wall crack as his way of accessorizing the defect, not to "hide" it per se, but to deliberately draw attention to it, as though he's fascinated by the world around him, corrupt and decadent as it is -- the nature of a true artist -- but feels he has something to contribute to it. A way of making his mark on the entertainment industry. As we see by the end of the film, he hasn't, his dreams are shattered (turned into hideous nightmares), and he has vacated his dwelling.
I believe, by the way, Todd convalesced with his associate for a while, but likely "went home" to wherever it was he came from, unable to hack it in Tinseltown, the way so many people come to and depart from Hollywood. Incidentally, I happen to live in this area and it really IS a snake pit of decadence and backstabbing, and the Boulevard of Broken Dreams continues to sparkle, attracting countless tourists and dreamers every day.
I think Faye's visit to Todd's dwelling at the end of the film is meant to prove some important points to the audience: 1) Faye wasn't killed in the mob; that she survived it, and was even able to walk away from it... 2) to show that Todd moved-on from where he was at during the film -- that his life in Hollywood, as it was, is over (what happens to Todd is somewhat left open to interpretation, but it's pretty clear that he's had a complete breakdown during the mob scene, so do the math -- in essence, he's dead in the water)...and 3) that Todd left the flower as his only remaining mark on Hollywood. This last gesture by the filmmakers is a romantic one, not necessarily towards Faye personally at all, imho. Todd leaving the flower is a way he is able to leave one, remaining mark on the world he tried to make a dent in and couldn't. Todd's dreams were shattered; he packed up his stuff and left, but left behind the flower as his one, remaining, perhaps most powerful mark on the cracked, disfigured world around him. It's as though he were leaving a flower on his own grave, in fact. The grave of his shattered dreams and his life in Hollywood.
Todd may (or may not) be literally "dead" -- but for all means and purposes by the end of the mob scene he might as well be -- but in a figurative sense, regarding his place in the Hollywood machine, he is a goner. The flower in the crack -- at first his simple flourish (artistic touch) on the seamy world around him, is at last his own melancholy tribute; a flower on his own professional and personal grave.
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