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Having a fifty-something, mousey woman kill a man? Come on - they had run out of Corleone's to be killers if Connie has to start whacking people. With all due respect, I don't think ANY mafioso would be intimidated if they discovered that Connie had, in fact, killed Don Altabello.
Nobody is surprised when guys like Luca Brasi kill people; it's when meek, mousy people start rubbing people out that you get impressed.

As far as being "intimidated," it's not in the sense that she's gonna rip your head off with her bare hands (a-la Luca Brasi), but that she's a ruthless cold-eyed beeeyatch who'd have you snuffed in a minute if it suited her purposes.

I still think it was an effective character development.

"You did good."