Now that I think about it, why so many side characters?
What was refreshing about this episode (I have to tie it back in somehow, right?) was that it was about characters who are regularly on the street, established, and fleshed out. They've been doing way too many "let's help out this fairy tale character" type episodes the past several years. It's a fun way to get celebrity guest stars into the storyline, but lame one off characters seem to be the only thing in abundance. Though, Peter Piper was kinda fun.
Kid's show or not, why do they refuse dramatic tension so many times to befall certain characters? it's what makes them whole. Tying it in, kind of a stretch, but this episode showed what they can do instead of an obnoxious Penguin flailing around for 10 minutes. Yeah, kids probably like hyper characters, but screaming little doofuses will cause headache ridden adults to change the channel.