It's been hard for me to get into this season, much like has apparently been the case for many of those who enjoyed the first season, but I think the cobwebs are falling away and the show has regained its stride. Very little of this episode was repetition, they didn't bother explaining Ned's ability again, and the overall story arc showed some progress. All in all, not bad for the third episode of the season.
The writers wisely realized that keeping Olive away from the rest of the cast, and dragging out the subplot regarding Olive keeping the secret from Chuck, would be a bad idea. It's the kind of plot element that gets old very quickly. Instead of letting the secret remain with Olive, the writers gave it to Chuck. In essence, it seems like a small change, but it changes the dynamic in an important way.
For one thing, it makes Chuck's decision to keep her revival away from Lily and Violet a lot more difficult. Even without knowing that Chuck is alive and well, Lily will not be happy with the notion that Olive might have told someone (otherwise, why would she leave the convent)? Ned has been given a reason to go looking for his father and gain some measure of closure. Oh, and the episode was full of sarcastic wit from Emerson, so that's always a good touch.
Regrettably, the ratings are still not reaching the bar set by the first season. One would think that an intelligent and unusual offering like "Pushing Daisies" would be perfect during such difficult times, but maybe it's still too morbid for the liking of the masses. Unfortunately, its forebears "Dead Like Me" and "Wonderfalls" also struggled and died young.