I don't even smoke and I feel like I need a cigarette after that finale.
While I'm sad to see Grogu go, it's probably for the best. They were really stretching credibility and bending over backwards coming up with excuses for Din to drop him off while he went off to do badass gunman things. And he's going to be pretty much this size for the duration of the show, barring any massive time skips. This chapter of Din's story is done and it's time to move on to the next one. I'm sure we'll see Grogu again before the show comes to an end, anyway.
I'm so glad Luke was the one to come to him. Not only was it lovely to see Luke Skywalker in his prime go to town on the bad guys, but he's the only character out of all the possibilities who was the logical choice to take Grogu. Ahsoka isn't a Jedi, and the status of both Ezra and Cal Kestis is unknown, plus neither of them would have made much sense in that moment. Luke is the Jedi of this time.
I do wish they had just recast him, though. The CGI was pretty good, especially for television, but if Lucasfilm want to continue using legacy characters such as him and Leia in their live action projects, sooner or later they're going to have to bite the bullet and recast them, just like they did with Han and Lando.
The stinger with Boba and Fennec was fun. It was nice to see them getting back in the mud after completing Boba's pledge to help Din. I do think that "The Book of Boba Fett" is going to be a focus of season 3, rather than its own thing. Perhaps Boba's rise as a crime boss leads to him and Din going head to head. Or maybe "The Book of Boba Fett" will indeed be a separate miniseries while Mando season 3 focuses on the darksaber and Mandalorian politics, leading to a confrontation between Din and Boba in season 4. Either way, I'm excited to find out.