This is my favorite episode! I love the references to Peanuts whenever a character is sad...with the song "Christmastime is Here" playing in the background the character walks with his/her head down. The first time it's George Michael and he walks past a red doghouse with a dog laying on it, it doesn't get much better than that! Sometimes running jokes just don't work, but Arrested Development manages to keep it funny having this happen to George Michael (twice b/c of a broken heart), Tobias (b/c someone ate his hard-boiled eggs), George Sr. (b/c of the newspaper article), and at the end Gob (b/c of Poof Magazine).
Also, the scenes about George Sr's "death" are great. Ice catering the wake, Buster's card, Gob's stunt...it's a beautiful thing!