This episode is the beginning of the Cannibal Candy Arc, the information about the automatons is gradually revealed and it is also tied to the current storyline. If you're the type of viewer who prefers the protagonist to become overpowered early on, then this episode will likely be the clincher for you. The scene at the end is quite suspenseful and leads directly into a cliffhanger which is a smart move by the studio to keep viewers invested and eager for the next episode. As for the fan service, if you're watching the Blu-ray (BD) version, there is no censorship. However, it only reaches the typical standards of an ecchi anime with exposure limited to nudity such as visible breasts and nipples. Even then, the anime avoids exaggerated jiggle physics and overly ridiculous fan-service scenes since fan service is not the main focus of the series.

P.S. You might be familiar with the ED, as it was quite popular back in the day among cosplayers who performed dance covers.