Is it possible that this could negatively impact how Katy looks? I mean, it kind of reveals that she considers peers (presumably Miley, Gaga, etc) rivals... I don't personally think this, I'm just scared other people might
Honestly, keep calm and ... Simply move on, and I don't mean you in person, but pretty much everybody else who has perhaps misunderstood a lighthearted report about a lighthearted chat between two people who work in the pop business.
Like I and another user already said, Katy had a chat with S. Nicks over a few cups of coffee. Nobody was seriously giving any 'advice' to anybody, I don't know where this fixed idea springs from in this thread. If Nicks called it so it was a figure of speech, not more.
Katy has befriended her because she likes and admires her, and those feelings seem to be mutual.
I don't know why the hell the author of an article has picked precisely this one mention out of a 3 hour chat - but (already almost regrettably) they have, and now it causes this confusion about the nature of the spontaneous meeting the two women had simply to enjoy each others' company.