When Niles stands up you can see that he is not actually completely undressed because you can see a bit of his tan undies.
Frasier suggests that he and Daphne go to his place since the phone is going to ring all night at Niles's.
Why don't they simply disconnect it?
The televised news clip of Frasier stating that "Maris Crane and Niles Crane will soon be executed" is spoken with significantly different inflection than the statement that Frasier is shown delivering in the previous scene.
Frasier says that Niles had a breakdown in his senior year because his girlfriend left him for his roommate. However, Niles has indicated that there was so few women before Maris, so few women after Maris, hence there was Maris. The only women were his pen pal Dora from Costa Rica and the little girl who showed him her underpants.
Frasier: Fine! Fine! Turn your anger on me! It's almost as if you've forgotten that not three days ago, I was punched in the face by a man now dead.
(Martin, Daphne, and Niles turn their heads down out of shame, realizing how they've been acting)
Frasier: Thank you. (cheerfully) Now, who wants pancakes?
Frasier: (coming up on Niles with two aprons from the coffee waiters) Alright Niles, you know what I'm going to do now? I'm going to wrap you up like a big green Christmas present.
Niles: (opening his pants) Oh yes, I can breathe now...(to Roz as he continues to step out of his clothes) I don't know how you can stand it.
Roz: (on the phone) Frasier? Where are you? Well get here and hurry up because Niles is almost (turns and looks) Niles is completely naked!
Niles: But Daphne, you can't really blame me for all of this!
Daphne: The hell I can't! If YOU hadn't had lunch with her then WE wouldn't have been dragged in to this mess and YOU wouldn't be sleeping alone on the couch tonight! But you did, and we were, so you are!