its funny because ive never seen an episode where people have such mixed feelings about it as the 10/17. some people loved it, while others- who belittled it by comparing it to past seasons- hated it. I think it's a prime example of the direction seinfeld is going in. like someone already mentioned its becoming a lot more surreal, the characters are all going nuts, and the show is losing its "laid back" quality which it has had throughout all the other seasons (except for maybe a little less during the last one). personally, i loved the episode because I think the new seinfeld is very good. obviously its very different than what we usually think of as seinfeld, but's also good in a very different way.
10/17 episode- a turning point
This is an excellent analysis. The show seems to be playing up the differences between it and the rest of TV sitcoms, that the main characters have few (if any) of the positive, "likable" traits that are emphasized in the rest of TV world comedies.
I think this is a very delibrate effort. JLD has mentioned in several interviews this summer how she likes the fact that Elaine is being allowed to me more crazy. The other characters seemed to be follwoing the pattern as well.
A big problem with this approach, which may be fun for the actors and easier for the writers, is the tendency of the product to become a parody of it past. Larry David seemed to be able to keep the show marginally grounded in real life, the humor indentifiable to the viewer's experiences.
This "warping" of the basic concept is common in shows that have been on for more than five seasons. At it's worse, (such as Roseanne, which has spun off it's axis into outer space this season) the show becomes un-watchable for many of it's original fans. When it's handled well (such as Cheers), it gives the creative people a chance to be re-invigorated and the fans a chance to enjoy a "new" show.
The jury is still out in my opinion. The new "Surreal Seinfeld" is still finding it's way. But the cache that the show built up over these years should allow it's fans to give it a chance. Not many other shows would that such chances and besides, it's still better than most all other shows on the tube.