Though a lot of people consider Our Flag Means Death as a show with a slow start, this episode is actually one of my favorites. Stede is overwhelmed with guilt over leaving his family and spends his time on the island transferring that guilt over to the death of Nigel Badminton. It's amusing to see Stede, who was so horrified by violence in the first episode, clearly not feeling that much guilt over the act of killing itself-everything that he struggles with about Nigel all stems from guilt over other matters, even if he doesn't recognize it at first. Though he is a murderer in only the weakest of senses, his feelings throughout this episode leave a lot of opportunity for him to demonstrate a greater ability to face the horrors of piracy.
The introduction of Izzy Hands is also an exciting plot point, as it demonstrates both Stede's first introduction to the pirate community and his first attempt to truly prove himself with any kind of real attack.