Given Nucky's and Arnold's last scene before the failed assisination attempt, I didn't think they were in cahoots any more. But also I thought that it was strange they were suddenly so at-odds with each other when they both had a common problem. So that fight was the McGuffin/Red Herring in this week's episode I suppose.
I realize that it would be hard to just write off a main character like Margaret, but it just feels like they're giving her "busy work" plot-wise. And it's not terribly interesting except perhaps from a historical perspective (hey... Kotex! How cool is that? (not very))
I feel the same way with VanAlden's plot line. His character was very interesting, but they really could have written him out of season 3 without leaving any loose threads from season 2. As it it, while his story is interesting, unless it really ties back to the main characters I don't like having a separate plot line like this. They should just spin off "The VanAlden Show"
The handling of this episode's Al Capone storyline was heavy-handed at best. Hey, someone bullies his kid and someone bullies his co-worker. He can't beat up his kid's bully so he beats up the bully of his co-worker (whom he bullied himself earlier). It was all a little too obvious and lacking in sublty for such a well-written show. :/
But I just LOVED the sceen where Chalky and his thug cohort made Eddie Cantor perform for them as a way of getting him to rework the horrible musical that Billie was rehersing. Absolutely great balance of comedy and tension at the same time.