Have to say that this episode was a nice flipside to the 1994 cartoon episode "Night Of The Lizard". Basically both had Eddie and Peter involved in the story, but this time Peter looks like the bad guy. Also a good example of Pete winning and losing at the same time.
My favorite scene is definitely Spidey trying to sneak up on the Lizard only for the cellphone to go off.
As for Pete's choice to make many off his Lizard photos, it's no different than when he did the same in the 1995 Series. Besides, even in some of the early comics he display a moral flaw.