Great episode! Loved seeing the Bad Janet. The karaoke scenes were hilarious! Michael awkwardly dancing to "who let the dogs out" was hilarious and the Bad People lip syncing to the Nixon Tapes was a stroke of comedic genius. This show really does have excellent comedic timing in its jokes, to the credit of the actors and the direction. Adam Scott was again excellent as the Bad Architect, suitably devilish and a jerk. Good Eleanor was perfectly cast. She was exactly what you would imagine the right Eleanor to go to the Good Place would be like: sweet, kind, overcoming adversity and still doing good for others. It was clear that she and Chidi are soul mates.
The fact that the mix up was a very rare set of events (How often would 2 people with the exact same name die at exactly the same time and in exactly the same place?) makes me think that the error is genuine and not some sort of cosmic test.
I don't think Michael is faking it. I think he really is incredibly innocent and naive. I think that is the point: as the architect of the Good Place, he would be the stereotypical "nice guy". It was good to see him finally stand up for himself. The show seems to have this theme of people growing. Eleanor is growing into a good person and Michael is growing into a less naive person.