It kinda felt they were setting up for the finale. The vague inferences to some bigger problem ahead, Twilight moving forward in her apprenticeship, and the general attitude of "this shit just got real".
So, prediction -- in the finale, Twilight and company fight Cthulhu.
As for the show -- I don't think it was bad, or even quite "meh". The royal wedding finale was simply a pretty big high to end on -- and it's been so long we're kind of gotten tense. I would say it was weaker than season 2, but stronger than season 1.