This episode was a nice kind of "declaration of war" episode. Now, Penguin is loose and at war with Galavan, Gordon knows Galavan's true colors, and Selina knows Silver's up to no good. That leaves Bruce and Alfred as the only solo protagonists out in the cold.
I loved how, for all that this episode was about Penguin going for emotional revenge, he's still by far one of the most practical characters in the show. The Galavans have a hard-on for toying with their enemies and embracing theatrics, which Penguin exploits to stay alive and target Theo. He's not a full on, David Xanatos/Lionel Luthor style schemer. But he is a very cunning and dangerous adversary. And now he's an acknowledged criminal on the run and at war with the mayor. Interesting stuff.
Eddie's descent into Riddler was wonderfully macabre, even if a little too definitive. Honestly, his plot was delivered at the same breakneck pace as everything else this season, and you can only get so much mileage out of the split personality theme. So now we'll get to see how his narcissistic streak becomes even more pronounced, and watch to see how he breaks ranks from the GCPD.
Silver's such a blatant femme fatale that I kind of hope she's set off Alfred's alarms as well. The real key to this subplot will be seeing how Bruce realizes the trap he's in. Will they have him snatched from death by Selina, now that she's probably even more sensitive to losing friends? Will Silver slip and allow the Great Detective to get his start?