The first half of the episode is total off the walls insanity. Lynch's world seems limitless, practically anything can happen. The editing is disorienting and disturbing, the cinematography is beautiful and unsettling, the scenery switches from being uniquely colorful to nearly pitch black in a matter of seconds. It feels like science fiction meets Salvador Dali; it's a twisted world chock full of bizarre creations, spirits both good and evil, dimensions and spaceships and things the human mind cannot even conjure!
Then, the second half gives the audience a perfectly timed breather. The interlude between these two parts is a disgusting, scary, and oddly humorous sequence centering around vomiting that is pulled off brilliantly; only Lynch can make a man puking in his car so surreal and fascinating. While there is still plenty of absurdism in the second half, it's mostly grounded in reality. There are hilarious moments and quotable lines being thrown at the audience left and right; Lynch wears an awkward smile of sheer glee as he eases the audience with heavy doses of the quirky and amusing.
It's a perfect balance of the dark and the light. Both of my favorite aspects of "Twin Peaks" (the absurd humor and surrealistic horror) are given nearly equal screen time, and there isn't a second that is boring or unoriginal in any way.