The episode started with the conclusion of the first battle against Chaos, which most obviously turned out rather bad for Syaoran and his companions. The rest of the episode was an intermezzo. Does that make the episode less awesome than usual? Of course not!
The identity of the bird/powerful entity also gets known: Chaos. He played both as bird, and he is someone who can travel through dimensions at will, and that’s why Fei Wong was behind him. The question then remains: which form is his true form? Is he really a bird who can take the form of a human, or is he a human who can take the form of a bird? Also, how did he get his feathers?
Another interesting question: when you travel through worlds, do you travel through time as well? Chaos case actually suggests this. He got his feathers after Sakura lost them, but he actually visited Sakura in her country, long before she lost them. Another possibility is that, while each country has its own timeline, there is always one time known as the present, and feathers are the only known things who can break through this cycle.
Anyway, Sakura and Syaoran were as cute as ever. For the first time ever, Syaoran is getting selfish, while Fay cheats a bit and uses magic and Kurogane gives him support, even though he doesn’t like it. It’s indeed a nice way to end the second third of the series. I’m also wondering whether the finale will consist out of only one, or two episodes.