The first episode of the third season introduced some new things to the show. It was now filmed before a live audience, which allows for better comedy timing (and sometimes loud acting). The new production system meant longer scenes in fewer locations, and that brought out the best in the writers.
There are also some changes to the (importance of) characters. With Fonzie getting a bigger role, we no longer get a nostalgic show about youngsters in the fifties, but a comedy ensemble with well-honed types. It means that certain characters move slightly to the background. Poor Potsie, once introduced as Richie's best friend, is relegated to a few shorter scenes. Richie's older brother Chuck has not only completely disappeared, he seems to be expunged from the family history.
With this episode Fonzie gets tied in closer to the Cunningham family, a new start for some hilarious adventures.