Interesting choice, to spend a whole episode on the memorial for the character who died last week, and to explore its impact on all the characters. That's nice to see, in a medium that too often trivializes death or glosses it over. It also fits this show, since it's set in a small town and it would be a close-knit community.
Of course, another way of looking at it is that they were really saving money by doing an episode almost wholly in one setting and focused on conversations rather than action. But then, I've always felt that budget limitations can be a good thing for TV and film, because they require a greater focus on characters and ideas and emotions rather than spectacle and action. Often, the most interesting story of all is two people in a room confronting each other. Or in this case, a bunch of people in a room.
I suspect the money-saving episode was partly to make up for the big action and FX last week, but maybe it's also saving up for a big finale. It looks like the merfolk are planning a strike on the town.