Sadly, this was another bad episode in a bad season of what was once a great show. I seem to be in a minority in that I liked the vast majority of season two, but this season...
As I see it, the show suffers from three key weaknesses: too many characters, to many fake-outs, and several characters who have become damaged (almost) irrepairably.
The solution to the first and second problems is the same: the characters (and their writers) have to learn to pull the trigger. Especially when the character in question is the ruthless HRG, or the supposed villain Sylar. It would certainly have improved the show had HRG killed Elle in the first minute of this episode. It would almost certainly have improved the show to have Claire die outright (not least because no-one would have seen it coming).
As for the damaged characters:
Hiro was for a long time my favourite character. That's probably why I enjoyed the second season so much, because his story was front and centre. But this season has been a disaster, first in losing his half of the formula in the most boneheaded way possible, then failing to capture the second one, then six episodes of bumbling around, and now this tedious and annoying child-Hiro story. They must end this storyline immediately and get Hiro back to being at least mostly effective, or else it's time to write him out.
Sylar has also been badly damaged. Is he a villain? Is he a hero? Is he a Petrelli or not? Is he working for Angela against Arthur, for Arthur against Angela, playing both sides against the middle, or what? Just pick one and stick with it, for goodness sake! Oh, and he needs to die permanently by the end of the season - he's done his part.
Then there's Peter. Simply put, he should never have survived the end of the first season, because the writers just haven't known what to do with him. When he had his powers, he was too powerful. Without them, he's just annoying. What I think they need to do here is give the guy his powers back, have him do whatever he needs to do to resolve the story, and then somehow write him out in a clear and unambiguous manner. As with Sylar, he's done his part.
But the worst of the bunch is poor Mohinder. I don't think this character can be redeemed. In the first season, I actually liked him, and I especially liked the fact that he was the smart guy and also the guy without powers. In the second season, the smarts got badly degraded, and as soon as he went all Brundlefly on us the character lost all hope of redemption. Basically, he needs to catch a bullet in the brain in the next episode, simply to minimise the damage he's causing to the show week after week. At this point, I don't think anything else will do.