The first thing I did when I got this episode was to stop it, and make sure that I hadn't missed an episode. Otoha is the star of this episode, as she takes Takuma into a slightly altered version of reality. Takuma works through it and in the end, has a moment with Otoha, who thanks him for helping her sister.
I was somewhat amused by the whole thing, even though Otoha was pushing the various needed buttons in order to teach Takuma a bit of self confidence. I do wonder if we'll get to see Otoha again, but I doubt it--as does Takuma.
All in all a fun episode. Anyways, it removes Otoha from consideration as a possible match for Takuma, despite her telling him she loves him.
And now, we'll hopefully go back to our regularly scheduled anime...
Uhm..... Imagine everything that has stood for reason in this series previously, except for how Takuma thinks and acts. Now that you have that, throw it all away, and mix in some arcane magical girl motifs and paint it over the picture of Hotaru's story book that she made up. Things such as Hayami and Hotaru living with Takuma as non-related little sisters, his buff uncle dressed up as a women, and claiming to be Takuma's mom and Yui as an evil magical girl.
Top it off with a kiss from Otoha-chan who then disappears and that's the episode.