Yeah, that final scene was a killer. Poor Daryl. And he really had some great lines in this episode: "This ain't us, man." "I ain't saying that was the wrong thing to do, but this is the right thing to do." I wonder if this will effect his relationship with Rick at all.
And Merle certainly died well. After everything, he went out a hero and reduced the Governor's forces significantly. Getting drunk, luring in a horde of zombies and then picking off a bunch of the enemy may not have been the most brilliant plan, but nobody ever said that he was a military genius-- just that he had military training.
I was disappointed in Rick for deciding to give up Michonne, but at least he ultimately made the right decision and did it on his own. This is quite a different Rick from the end of last season.