Yes, as a second episode it was obviously way too early to have an episode like this because no one at the time ever got to know the characters before this and so it didn't work out well and that was the bad news.
The good news is that this episode aged well. After the series was over and on reruns, we look back on The Naked Now after knowing our characters and it seems to work out almost perfectly.
You have to admit this is hilarious esspecially the scene with Picard trying to handle Dr. Crusher on the ready room door and she unzips her uniform saying "Take me!" infront of the crew and Picard whispering in a funny tone "Not now doctor!"
Of course there are other hilarious scenes like Data getting laid then acting drunk, another classic moment.
Now is it a perfect episode worthy of five stars? No. I take one star off because at the time of its realese wouldn't have worked out, but now that we have finished the show and watch it on reruns, it's one of the finest of the first season.