Excellent episode. Feels like a completely different show... and that's not a bad thing. The show simply "looks" better, and the writing is considerably improved.
They seem to have done away with the sophomoric, goofy humor and made the tone more in line with that of CA:TWS, which is great. I'm not saying that they need to do away with the "funny" altogether. I don't expect them to and neither do I want them to. I just want the humor, when it comes, to be slightly more sophisticated and not something that often seemed to be geared towards making very small children laugh.
I would say that this was the second best episode of the series-to-date after "Turn, Turn, Turn". On the various plot threads...
* I don't think they do away with Lawless' character. Not that I'm against character deaths, but they didn't really do much with her before (apparently) killing her off. For example, take the case of her (theorized) girlfriend, Victoria Hand. They built a strong, well written character, gave her a lot of strong character moments, and when she finally died, it was really impactful, both in terms of plot as well as emotionally. Also, it doesn't make sense to have Hunter cut off her arm to save her and then moments after have her die in the car wreck. Um, outside of Misty Knight, do we know of any character that gets a bionic arm?

I mean, she
could be dead (as in DEAD), but I don't think so.
* I completely bought Ward's disintegrating mental state and thought it was quite well executed. He basically doesn't have anyone or anything to anchor himself to at this point outside of Skye, and feels like he has absolutely nothing to lose. Really liked the Lector/Clarice dynamic.
* The Fitz situation was handled in a really cool, interesting fashion. Really looking forward to where this goes.
* Creel was excellent. My only complaint is that, like Deathlok last season, he goes about things in a slow, labored fashion. I would like him to get a little more dynamic in his movements.
* Talbot vs. Coulson was really nicely played.
* Oh, and three cheers for Agent Carter and a couple of the Howlers!