While the romance subplot was still tedious, this was a solid episode that proved Lelouch isn't infallible. The show is successfully building up Cornelia as an imposing adversary and fairly interesting character. The way her philosophy translates into battle is decently compelling, although we see it done better in R2. Seeing her so easily get Lelouch dancing to her tune was entertaining to say the least, as was bearing witness to Lelouch's desperation. This is really the catalyst for his building up and organization of the Japanese offensive through clever manipulation of the small nationalist factions.
I took no issue with the Yamato Alliance immediately trusting Zero after they witnessed the miracles he worked in Shinjuku and before Suzaku's court martial. For how bleak their situation looked with Cornelia closing in on them, it makes perfect sense for them to defer to Zero's leadership. The C. C. "deus ex machina" also didn't bother me much at all. She didn't appear in the middle of Cornelia's formation, as all her forces had already retreated to surround her vehicle. She merely stood exposed at the top of a bombed-out building to make sure she was seen, and bought Lelouch enough time to slip out of Cornelia's ranks. She was also very clearly wearing the real Zero outfit that Lelouch opted not to wear for the covert operation.