This episode ranks right up there with Absolute Justice and Metallo as the best of the season. Good action, character interaction, and pacing throughout. I agree that Tess has been written inconsistently, but I give credit to the actress for making Tess vulnerable, sympathetic, and still totally untrustworthy in her final conversation with Oliver. I liked most of her exchanges with Oliver last night and the dual revelation was pretty neat.
I also liked Clark breaking Chloe out of Checkmate. I thought those scenes were cool and I'm glad they were shot that way so it didn't make the action rushed, which I think Smallville does way too often. Pam Grier was good as Waller, though I admit I still wish they had gotten CCH Pounder or maybe even Penny Johnson-Gerald for the role. Grier is growing on me since Absolute Justice. Seeing the Martian Manhunter use more of his powers was great. I was hoping we would see him phase though to get at that alien blood.
Interesting speculation about the Red Queen. That would be pretty interesting indeed. I hadn't heard Waller say queen, so I had been thinking it might be a Red King, and I know that a potential candidate will be showing up before the end of the season.