Obviously its just me, but this episode didnt "feel" any shorter than normal. They do feel short, and everyone saying they want them to be longer are just paying the show compliments. Its pretty much a "more of the same" argument which isnt a bad thing.
As for the direction of the show, I personally loved the style of the first two episodes they are my favorates and I can totally understand people thinking its just become a cartoon show. I dont really have a problem with this and still enjoy it (possibly in a different way).
In the first two episodes the jokes seemed to be about Schmoopy's misunderstanding of D&D and using his knowledge of MMO's to turn the tables. It was mostly about gamers vs table top I supose. Atleast how I got it. Now the show is more about running jokes, and thats fine. UR has become its own genre, with its own jokes. I think some people (myself included) found this transition to be hard because what I loved at first has become something entirely different. Its like when Zero Punctuation got its own theme song, people bitched for a while but ultimately it was a good idea.
So to summerize for people skipping over, length is fine, jokes are great, dont take whiners seriously and make it weekly please.