This sets up the premise of an 'older sister' that Michael may have, which in fact turns out to be Linsday later on.
This episode showcases how naive and oblivious Michael is to everything going on around him. It likens him to Tobias's denial that he may be gay.
The hilarious reference to the old computers was fun; Tobias called the computer Michael was on a "ky' model and said 'make sure you don't get any moisture on these babies"
Justine Bateman was outstanding in this episode and it was great seeing her again.