I always thought it was a look f total resignation, and knowledge that no matter how much Michael "won," that in the end he "lost." It was one of the few moments in the trilogy where Michael is not in a state of denial about his "legitimacy."
Exactly, As I posted above, his change to the Michael of GFIII probably started then, and yes, the scene was apparently years later. Afterall, Vito was all about the family. Michael not only murdered a member of his family, but he manipulated (Connie: "Michael wants to take him to Reno now." and Anthony: "Some day you will [help me]." them to serve his own ends.
