It was a shame that Michael lost his council position.... you could see how much it affected him and you know that it hit his self esteem really hard but it was another one of those life lessons. Ya can't win all the time and you have to go with the punches Mike.
Another good episode-- I know the show is not doing great in the ratings but I still find it a fascinating study of human behaviour and hope it plays out till the end and CBS doesn't pull the plug.
On a side note... Greg finally got his gold star so maybe there is hope after all...