After watching this episode, I think the majority of the critics who damned the first two episodes as being flat storytelling with no character development didn't give it enough of a chance.
For me, there was character development galore -especially amongst the secondary storylines. If you look more closely at the Tip storyline it's a complex layering of an adolescent who has been abused and possibly kidnapped their entire life. On top of it you might say it's an allegory about the struggle of a transgendered person. As someone mentioned earlier in the thread the moment when Tip doesn't know which bathroom to go to spells out in a nutshell what most transgendered people feel. Their gut tells them they are one thing but physical appearance and social norms says they have to behave in a different way. I was also impressed by the directing and acting of the actors who played bit parts in Tip's scenes. The waitress who walked up to Tip and warned him about covering up wasn't unkind. After her verbal warning, she gently and sympathetically touched Tip on his forearm. Also, the herbalist was also very kind in his revelation and warning to Tip about the true nature of the "medicine."
The Wizard and Anna scenes were also interesting bc you don't expect him to be so sympathetic to her and to relate to her in some ways.
Really great nuanced stuff in there. I hope the viewing audience continues to give the show a chance.
Plus, it doesn't hurt that Dorothy and her Scarecrow are gorgeous to look at and have a great chemistry.