Having now seen the first eight episodes of season 5, I agree that it doesn't really pick up until
"Lineage" and
"Destiny". The episodes preceding it had some good parts as it was fun to see the characters adjusting to their new surroundings/resources, abilities, and setting, but these two were the first ones not hampered by a weak standalone plot. They advanced the characters and overall series arc nicely.
"Lineage" was great for exploring Wesley's character more deeply (although it was really depressing how sad things were for him at the end

) and I felt
"Destiny" was the first episode of the series to use Spike really well in a way that makes his inclusion in the show feel necessary and potentially intriguing, instead of just forced and irritating.
For the most part, I usually mentally tune out during fight scenes on TV shows as I tend to find them superfluous and tedious (on
"Buffy: The Vampire Slayer" and
"Xena: Warrior Princess", especially), but the brawl between Angel and Spike was one of the few that really grabbed my attention early on and kept me riveted for its entire duration. I loved how brutal and bloody it was, with a lot of engrossingly cutting dialog between Angel and Spike along the way. Spike was actually eloquent and intimidating for the first time in awhile after a few episode of mostly just being annoying 'comic relief'.
I understand why some of you might have liked Lilah being in season 5 instead of Eve, but I wouldn't trade Eve for anyone. I loved the Lilah character in all the previous seasons and was sad when she left, but Eve brings something to the show that I find equally enjoyable, albeit in a different way. It's hard to explain, but to me there's something just irresistible about this character and actress. Her body language and line delivery are almost non-stop sex appeal, with the exception of in her more (supposedly) vulnerable, worried scenes like when Gunn started strangling her.
Speaking of 'most [something] in Whedon shows', I think she's the sexiest character he's ever written. Yes, it would have been nice to still have Lilah around, but smokin' hot Eve is a hell of a consolation prize after Lilah's loss. Her sexuality/sex drive goes way beyond Lilah's too. She not only does Angel (and feels even less conflicted about it than Lilah did about Wesley), but she does Lindsey too!

As wild as Lilah was, I don't think she was ever quite ruthless and sexy enough for him (she did seem to try), and that's another reason why Eve rules.
Of course, I'm delighted to see the hottest female character on the show revealed as consorting with who I consider the coolest male villain on the show. I can't wait to see what the two of them get up to. I would call it a match made in heaven, but considering the people involved, it would probably be more appropriate to call it a 'match made in hell'.

Whatever it is, it's perfect, and I never saw it coming.
A few fond observations related to Spike:
- I love that he was listening to the great Dead Kennedys song
"Too Drunk To Fuck" while driving in
"Destiny". I foolishly got excited that we'd actually get to hear the chorus with the song's title in it, but of course Angel called his cell phone before we had a chance.
- One of Spike's funniest lines ever was in that brilliantly hilarious scene where Wes gets annoyed at people trying to "comfort" him by confessing to killing their parents -
"Don't know if you know this, but, uh, I killed my mum. Actually, I'd already killed her, and then she tried to shag me, so I had to, uh..."