The fact that this episode is a fan favorite in season two already says a lot about the quality of that season, doesn't it? In my opinion, this is an utterly overrated episode that may impress you when watching it for the first time, but is plainly unrealistic and idiotic the second time. Of course, not everything is bad about "Peekaboo", so here are all my thoughts about the episode.
Since the scale of the plot is quite narrowed in this episode and two main characters are just completely left out, Vince Gilligan and J. Roberts's screenplay has its focus set entirely on two story parts, one for the each of the two protagonists. Jesse tries to "take care" of the couple that has ripped off his henchman Skinny Pete in the last episode, but soon learns that that endeavor isn't as easy as it sounds, and his colleague Walt (whom he never encounters in this episode, by the way) has to think up new lies in front of his wife for the zillionth time. I don't suppose I have to stress this, but the Jesse arc is about as many times more entertaining as the periodic table has elements in it. And though both parts contain flaws, his is at least thrilling and unpredictable.
Jessica Hecht as Gretchen Schwartz is added to the White family tension (can't blame you if you don't remember her from season one, she's freaking boring), but all that did was annoy me. Not ultimately because of her, but just because the whole situation is absolutely nothing new. There's confusion, lies, and anger all of which we've been seeing since Walt began with the meth business and there is just no reason at all to spend 20 minutes on it. The acting didn't feel genuine either which was another point that made it difficult for me to enjoy what I was seeing.
The other half of "Peekaboo" didn't make me feel that way, but it was far from perfect as well: since everything that has to do with Walt is increasingly austere and unfunny, Mr. Gilligan obviously felt that he had to include more jokes when it comes to Jesse. Jokes alone wouldn't have been unfavorable though, it's the silliness that gave me a hard time. The style hovered between a disconcerting portrait of the consequences of meth and over the top acting and screenwriting that ruined it all for me. Okay, I'll be fair: the first time I watched it, I was delighted by the suspense these scenes brought with them, but the second time, all that was left was the frustration at how generic and stupid the finale of this part was. At least, Aaron Paul does an outstanding acting job and we learn interesting things about his character.