Daphne is back from "Fat camp" and while Niles is planning on consummating their relationship, Daphne feels distant from him after her therapist told her that her weight gaining was a way for her to push Niles away because of her fear of disappointing him and not being able to fulfill his 7 year long fantasy about her. That angers Niles and gets them into an ugly argument. Frasier meddles, as always, and helps Niles realize that the fact he never noticed Daphne's weight is because he tries to avoid her flaws- fearing that the relationship might not work out and he would find that he'd been chasing an illusion for 7 years. After Niles realize he should see Daphne the way she really is and not put her on "goddess" status, they make up and finally make love for the 1st time.
This is one of the best plots of the show. First of all- before watching this episode the whole Daphne's sudden addiction to food didn't make sense and seemed like an unconvincing way for the writers to cover up Jane's pregnancy and maternity leave. This episode explains everything, plus it makes both Daphne and Niles look so human and their relationship so realistic- not all fun and kisses but real issues. David, Jane and Kelsey give wonderful performances. Excellent episode. Plus nice editing work, effects that aren't usually seen on sitcoms