Good episode. I liked Conner, myself, but then I've only seen the past four or five episodes, ever. So I don't know what he was like before. I'd vaguely heard about W&H from reading some websites, but never really knew the power they had.
So, I guess it comes down to the classic Deal with the Devil? W&H seems pretty darn powerful, what with being able to reshape reality and all (since apparently Angel is the only person who even remembers Conner existed). The whole offer does seem corrupting, and it'll be interesting to see how they each deal with it. Gunn seems to have been either replaced or somehow already corrupted; Fred's comment about him being 'taller' might suggest the werepanther idea. Does that stem from anything else in the past?
And it also brings up another idea: is anything even what it seems? The bit about the limo could be a simple flip in the film but it also seems that it could be a hint that Things Are Not Right Now, since Angel made the deal.