I personally thought it was cool, to have some defense against Smokey, and if Juliette is correct, and the Others don't know what the heck he is, then we have a new bag of issues. However, the sound and flashing of Smokey sounded to me like an MRI machine, which makes sense, a very advanced MRI that not only scans the brain, but the thoughts as well. The first word in MRI is magnetic, so it definately makes sense.
Looking at Kate and Juliette stranded out there, it's almost as if the Others were saying, 'ok, these two, can't be saved, and can't be helped, so let's put them in Smokey's yard and see how he deals with them'
Locke turning wholely to the Others was a bit of a suprise, but not much, I just would like to see how he dealt with Cooper after their 'meeting'.
Odd epi, but cool.