The Governor Dunston thing was a fun idea-- a nice wink at the Tina Fey/Sarah Palin phenomenon, and a good way of throwing a wrinkle into the "trash NBC" storyline-- but I thought the Dunston character himself was too random and too over-the-top to be particularly funny. Obviously
30 Rock is built to some extent on "too random and too over-the-top," but you can have too much of a good thing. Some of the Kenneth (and now Hazel) jokes have sometimes fallen into that trap, and Dunston did so as well. Overall a fine episode, though.