This and the previous episode ("Mind over Murder" in which Peter sets up a bar in their basement and Lois starts singing) showcase perfectly how cute "Family Guy" was in the beginning. Sure, characters need some edge, but other than that, the show had all its elements present that made it the show it was and still is. Naturally the pacing and rhythm change a little over the course of time, when the people working on the show and the techniques they use are changing.
It reminds me of "The Simpsons" very much. The old stories are very similar and you can see a lot of Homer in Peter. As I said: the show was cute. It was softer and more jaded than Simpsons. I especially like Brian who is a cute dog character sipping on a drink off a coconut with a straw. Later they all turn into sex-crazed maniacs and/or sodomites.
Just as The Simpsons, Family Guy needs a little time the reach its peak and get things running - or to establish itself, if you will.