Getting back on track...
I didn't post a review of 1.4 and, though I enjoy this series, I kinda considered it a low point. This episode has restored my faith, as it doesn't rely on random humor as much and is getting back to playing off the quirkyness of the characters (which, to me, is the best part of this series.)
The random and sexual humor has never really done much for me. It's not that I want it eliminated, because it's funny out of the blue and in small doses, but what drew me into this series was how, in episodes 1.1-1.3, the humor came more from the clever spoofing of the genre as a whole rather than simply putting the genre's archetypes in offbeat situations (as usually happens when people do "Collection Anime" spoofs.)
This was a definite improvement over 1.4, but I hope that maybe as the series progresses you'll focus more on developing the story and characters and making fun of the stylistic and narrative cliches of the genre (which, as you have shown, you CAN do quite well.)
I eagerly await the start of episode 2. If it lives up to the tremendous potential this series has, Morphemon Duelists will BE the coolest.