So, apparently Guinevere's vagina is the most powerful force in Camelot. In this episode, Lancelot/Gwen and Morgana/Gwen had a lot more chemistry than Arthur/Gwen, in my opinion. All of the dialogue, particularly Lancelot's, was about fifty times more srs bsns than usual. Yes, it's normally cheesy and over the top, but this was a brand new level of OMG EPIC ROMANCE OMG OMG OMG.
However, I did enjoy that the Arthur/Morgana banter I liked so much in the first series made a return. While Morgana'a badassery was once again overlooked in favor of Gwen's vag, what scenes she did have were awesome. The girl looks damn good wielding a sword.
While I don't mind that the other characters are being more developed, Merlin isn't being used to his full potential in this series. In 2x03, he was simply used to make careless mistakes to draw the action along, and in this episode, it was totally out of character for him to be falling asleep while Gwen's safety was at stake. While we're used to seeing him in the role of the clumsy servant who jumps in at the end of the day to be the unsung hero, the character was lacking in depth this time around. He hasn't even had the chance to have tomatoes thrown at him in this series!
The end hinted nicely as to how great a king Arthur will become, when he was making sure that Merlin, Lancelot, and Gwen got out first. His character is definitely maturing, and it'll be interesting to see how that progresses until they decide to kill off Uther. He's learning a lot; we saw that when the angst tables were turned on him in this episode.