I thought the most notable aspects of the episode were 1) Walt having the bravery to confront Jesse, even in a public place 2)Hank shouting out that Walt cares about Jesse and 3)Hank shouting out that Jesse was a junkie and a murderer, in that order.
Sorry, but Walt growing testicles that work when he isn't desperate isn't quite convincing.
Hank perceiving Walt's twisted love for his surrogate son through Jesse's hysterical confession comes from the script rather any plausible analysis or deductive process. The strongest piece of evidence, Walt's vehicular homicide, is trumped by the way Jesse was an absolutely essential ally against Fring.
Hank despising a junkie more than a murderer, while ignoring the shocking
way that Jessie simply confessed (really, how often does that happen?) shows the writers have decided that, as Gomez shouted out, Hank is driven by a grudge, not moral outrage. Part of glorifying the hero is demeaning the other protagonists.
The tarantula jar is an obvious starting point to find validating evidence for the confession. In fact, the camera lingering on it set it up as a major plot device. So, like Jesse's impossible freedom, we have the script unartfully contriving a way for the final confrontation to be limited to the desired characters. There's nothing so obvious about Lydia, but the decree that she won't be a suitable starting point is nearly as arbitrary. The Aryan Nation is also a bunch of starting points, a lot of those guys are in prison, open to all sorts of carrots and sticks.
Jesse may think that if he takes out Todd the right way, he'll get Lydia determined to force Walt into cooking again, that is, providing fresh new possibilities of material evidence.
Jesse palming the memory card doesn't fit his emotional state, and really portrays Hanks as a giant tool. Unfortunately it's possible that's the plan, since the plotting is falling to pieces.