I am... thoroughly impressed that so many things I didn't want to happen all happened within the span of a single episode. I have to say, I think my overall rating of Gaim just went down a full point.
Going into the "invade Yggdrasil" arc, Kaito was almost like the one in charge. He was a capable leader and it was looking for quite a while like Kouta even might have ended up on his own, in a sort of "Kouta has the overwhelming power, but Kaito has the mind and resolve, the mental power, and the people around him" scenario. Now that Kouta's got his resolve, however, everyone is inexplicably flocking to him and, with the exception of Minato, it's like everyone and everything involving Kaito from the past 10+ episodes just got reset or rewritten for the convenience of the plot. A stark contrast to the guy who admitted his own tactlessness then proceeded to punch Ryouma for being even more tactless a while back.
I was hoping Kaito might have had some kind of ulterior motive or some kind of plan that he was hiding behind the "RAR POWER" stuff, but the last scene in the rain (and the preview) seems to imply... nope, we're just disregarding the great character that we'd been building up completely after all. Meanwhile, all of Micchy's sins are being magically forgiven and he's getting a super sympathetic sendoff (if the "Last Transformation" title is worth anything, at least) while the genuinely decent, if gruff, Kaito is going to get dragged through the trash for the sake of... I don't even know. I can only hope that instead of pulling a cliche "I guess... you were the stronger one... after all... (dramatic death)" ending with him, they'll reveal he'd been being mentally corrupted by his injury or something.
Last but not least, Sagara. I want to hold out hope that he still won't be the villain here, but I'm rather disappointed they took such an easy route with him. With that as his identity, they've potentially found an easy fix for all the show's problems right there, and they could have done so much more than that.
Overall it was an okay episode on its own, but for what it meant to Gaim as a whole, I dunno.