Re: Buffy or Angel?
Yes, but as they all had lost their memories, Spike was thinking that maybe he was a vampire with a soul who was on a path of redemption, prompting Buffy's response. The humor of the line being the existence of Angel.
"In blackest day, in brightest night, beware your fears made into light. Let those who try to stop what's right, burn like my power: Sinestro's might!"