I watched the episode one morning on Lifetime and its was great. It was entertaining as well as thought-provoking, which should be the criteria of a good sitcom in my book. I saw in the trivia that this episode won an Emmy for its Outstanding Editing and it should have, because that scene in which Niles and Frasier goes through Niles and Daphne's love life was amazing. It reminded me of the Charmed episodes "Cat House" (Season 5) and "Generation Hex" (Season 8) in which the characters of the current season are digitally edited to go in past season episodes.
I'm still laughing about how Roz ended up writing "Heidi". That was pure genius. This episode was awesome and I can't wait to see what's in store for these "fine example" of characters on Frasier.