Blaise writes...

PROTECTION

I'll be honest and say that this isn't one of my favorite episodes. Of course, in the initial airing that may have largely been the result of not having my favorite garg (Brooklyn) even appearing. And while I have definitely gotten over that, I think I really would have appreciated at least some mention of where the others were at this time (even if only "They're out on patrol...with Bronx").
Even then, there are a few other things that put me off. Broadway's "mobster lingo" for one. I'm sure some may find it humorous, and it is in keeping with Broadway's character, no doubt about that, but I just cringe every time he talks like that. I suppose I may have liked it better if there had been shots of the other characters reacting to it--Dracon and gang looking perplexed, Elisa embarrassed, and Goliath...well, the stoic look works for him.
There were other bits and pieces of dialogue that didn't really work for me, and they usually run along the lines of "stereotypical cops & mobsters" phrases (Elisa and Glasses get a few of that). On the other hand, I don't have any better suggestions for dialogue, so that's how much my two cents are worth.
And chalk me up as another one who didn't think Elisa had gone bad or was a clone (or even suspected that she was being framed--her telling Pal Joey that "Dracon's territory is [her] territory" led me to believe that she was the "lady cop" Glasses had been talking about...a conclusion I had already drawn when Glasses mentioned it).
All that said, this ep has gotten better with age for me, and there are quite a few nice things in it.
Elisa's clothes were a plus. I loved seeing her in something a little more..."fun," I guess you could say.
And while there may have been dialogue I didn't like, there was a fair amount that I did find enjoyable. Most of the one's that you listed, Greg, but also some that I like mostly because of the way the actor's read them:
Elisa: (as Goliath and Broadway attack) "Oh, not now!"
Dracon: (after Elisa has introduced Dracon to the gargoyles) "We've met."
Pal Joey: "Knock out the people, blow up the building: simple." (Gotta love that guyes ease when it comes to mob work.)
There are also some animation moments I like--standouts being Elisa's facial reactions when Dracon drapes his arm around her shoulders, and Goliath's gripping his belt at the end of Act 2 (you don't see him do that often).
Character-wise, the one's that are presented are still enjoyable. Goliath's outrage at the perversion of "protection" was something I didn't fully appreciate until later viewings. For a gargoyle that lives up to the ideals of his people, that's got to be something akin to blasphemy. [Note: I had not read Todd's comments when I wrote this, but I am in full agreement with him here.]
I loved Matt's interaction with Jaffe as well (and I could kick myself for not getting the "tilting at windmills" reference right off the bat). I also smile at how Matt looks in his disguise.
The whole supporting cast is enjoyable. Art and Lois are a nice introductory couple, and I love Art's defiance, how he almost names Dracon, only to be talked down, grudgingly, by Lois. A nice contrast in personalities, and you really feel sorry that their business of 30-years was gone in an instant.
I think Dracon, while not the mightiest of the garg's adversaries, has some enjoyable character aspects. Mostly, his chutzpah (sp?)--in his first appearance he took on Xanatos, here...he pats Goliath on the shoulder (I love G's growl). Glasses and Pal Joey are also unique, each in their own ways. I noticed Dracon's quiet insult to Glasses about how he's obviously not "the man in charge." You highlighted an interesting difference between Dracon and Xanatos, Greg--Dracon treats his henchmen in a fashion closer to a "normal" animated villain. Of course, he doesn't have the normal animated sidekicks--Glasses is more intelligent, and Pal Joey more ruthless. Seriously, Pal Joey really makes an impression here; his attitude during the interrogation, his "professional" demeanor in attmepting to blow up the laundromat, all very cool.
I didn't figure out who the laundromat owners were until after they dropped their act. :)
Dracon getting the drop on Elisa in the general store was a bit of a stretch, but I love that Elisa extricated herself from it and KICKED DRACON'S GANGERSTER @$$! I also loved it when she stuck it to Dracon about his habit of calling her "sugar."
One thing I saw in my first viewing that I really liked was the fact that Dracon's being out of jail was at least brought up. In a show like BATMAN, you don't mind that the villains just appear out on the streets again without an explanation, but in GARGOYLES, Xanatos kind of set a precedent. Bottom line, I was glad that at least some explanation was given for why Dracon was free to run business as usual.
Watching Broadway racing against the bomb's timer is always a nice sequence for me, and it still gets me how he just barely escapes the explosion.
I really liked Goliath's speech to Dracon when he had the jerk in the air. I hadn't really picked up on the clue of Goliath's eyes losing their "anger-glow," but I did find it a neat image all the same.
I also loved Goliath's, "I will protect you, you will protect me, and together we will protect this city." That was a line that really hit me.
As for the whole "Jalapena" thing...eh, it didn't leave too great an impression on me except for Goliath's one at the end. It did make for a cheesy, but somewhat fun way to finish the ep. I hadn't expected it to appear as a curse word throughout the rest of the series. I do agree that the gargs should have found some sort of substitute swear word, but I would have loved something with a more...gaelic (sp?) sound, maybe?
Anyway, while its not at the top of my list, there are things to like in this episode.