Season One was where B5 searched for its footing and is known for episodes that don't follow the season arc and this would be potentially just another of those "throwaway" episodes.
However, this episode is the first in which we see Dr Franklin test his mettle and see just how fervent a proponent for life Dr Franklin is and how far he is willing to go.
We see inklings of Franklin's character that will prove to be important later in the story and we also see a president set for B5's desired neutrality even at the expense of regular staff of the vessel.
Though this ep adds nothing to the arc itself, it does show the fine day-to-day balance that B5 is attempting to maintain and glimpses into the mundane political humdrum that the station has to relentlessly undergo.
The story itself is a clear philosophical allegory: Religion vs Science and it handles that with all the subtlety of a frozen fish to the temple.