Well, with the cancellation of Jpod by CBC it would appear that this episode marks the end of the podsters, and if so, it's a shame for such a great series to go out on such a sour note.
Start to finish this one lacked that Coupland humour, and really just felt thrown together. The revealing of the true identity of Babette was a joke. One of the things that makes Coupland's books (particularly the tech industry ones) so good is that there they do tend to be based in reality, and those of us with tech industry backgrounds can relate. The Babette story really threw that out the window and felt like something that'd appear in a movie like the Net or Hackers than a tech-savvy series such as this.
Top that off with the horrible ending with what happened to Kaitlin, and you have a stinker of an episode.
Too bad, as this really was the best show I've seen on CBC in quite some time.