On the island we see one group of island inhabitants final realise that the ship isn’t there to rescue them, whilst the other group get caught in the crossfire as the mercenary team from the ship finally catch up with Ben, using his daughter as a bargaining chip. In the flash-forward we see Ben recruiting Sayid as a hitman, and what perhaps is the most important scene of the episode, where Ben and Charles Widmore come face to face for the first time on screen.
This episode is also significant because it shows Ben totally misjudging a situation resulting in the death of his daughter. He tries to persuade the mercenary team that his daughter does not matter to him, however the mercenaries, believing she has no value to them, just shoot her in cold blood. This does however reveal another secret, as despite his comments in the past that he doesn’t know anything about the smoke monster, he summons it up to destroy the mercenaries and allow himself and the others to make their escape.
However Ben blames Widmore for the death of his daughter, and results in Ben telling Widmore that he will kill Penelope in revenge. The key point to note at this point though is the growing friendship between Sayid and Desmond is almost certainly going to come into conflict with the relationship between Desmond and Penelope if Ben sends Sayid to do the work.
What the final scene does though, is finally seem to provide the beginnings of some answers over the island. Widmore clearly knows that Ben is the son of one of the janitors employed by the DHARMA initiative, and that he poisoned the DHARMA initiative people in order to take control for himself. Widmore claims that he owns the island, so the question is whether Widmore is ultimately behind the DHARMA initiative and the Hanso Foundation is trying to regain control of the island from Ben. I’m sure it won’t be quite that simple, and quite likely the passengers on Oceanic 815 will probably be more involved that just bystanders caught in the cross-fire. Certainly it does seem that having given the writing team a definite end date, after several seasons of more and more questions, we do seem to be moving towards some answers!