Holy shit, this episode was awesome, can't believe the episode started out with shipping and flatulence jokes and ended with...well what we got.
The Airbender kids were awesomely funny, Meelo's disturbing/cute crush on Asami, Ikki meeting her match in Bolin and then pwning him, Korra's and Ikki's faces...etc.
Asami's definitely a little jealous/apprehensive of Mako and Korra now, wonder if she'll confront Mako about his feelings in prison in future episodes?
While the Team Avatar action was awesome (Bolin's and Mako's non-pro-bending earth and lightning bending really got to shine) what really stood out to me was the the fact the laws imposed on non-benders reflect many real world occurrences throughout world history. With non-benders being deprived of electricity, assumed guilty for simply existing, forced into curfew and arrested for peaceful protest....well, you can see the parallels between the Red Scare, Japanese Internment during WW II and Nazi laws against Jews.
Then Tarrlok, he truly fulfilled his trope as a "Magnificent Bastard", and even went a little berserk. While Tarrlok is definitely bad, I don't think he is a Equalist ally (remember how being compared to Amon is what made him snap) , like the episode's title,I think Tarrlok is simply the extreme opposite of Amon, bending supremacist. Him being able to Bloodbend without a full moon was villainy at its finest. I think we can safely assume that the man in the flashbacks is Yakone, and from what we saw it looks likes, similar to Tarrlok, he was a extremely powerful Bloodbeder as well, it looked like he was Bloodbending everyone in the entire room in the flashback including Toph and Aang. Makes me suspect that Tarrlok has a connection to him in some way. And the meaning of Yakone's name probably is significant as well:
Yakone is a name meaning "Red Aurora" in an Inuit dialect. The language of origin is Ahtna Athabascan, which really isn't Eskimo (Inuit which is up on the north slope versus the Interior tribes of Ahtna). As a metaphor it can mean "blood spray on the snow".