Good episode, it was nice to see where Misty's fear of Gyarados came from. Now all we need is where did her fear of bugs come from if there is a story behind it.
I wonder who's Gym that was in the beginning on the TV? It makes me think it kinda looked like a Grass type gym, maybe Erika got shut down? (Perhaps her girls kept banning male trainers or female for that matter battling just because they don't care about perfume and got it shut down).
Anyways good for Misty to tame Gyarados and for it to save her at the end. Although with what Hitmonchan did I am pretty sure some trainers including either Ash or a gym leader has done that before, so I am not sure if that should have been illegal.