The third episode continues right where the second ended. It continues to to focus its attention on the story of Fiona and her lust for power, Zoe's strange obsession with Kyle, and Cordelia's inability to have a child. It insults the audience by pretending to develop the minor character when those scenes only serve to enhance the stories of the three characters in focus.
The scene would work better if the if a little bit of subtlety was used. Case in point would be be the only scene in the episode to really focus on a minor character, that of Queenie. The house, while everybody but Queenie and Delphine seem to be gone, is attacked by the Minotaur that was partially created by Delphine but given life by Marie. Queenie, acting as if a hero goes to fend off the Minotaur. What in fact really happens is Queenie attempts to give herself to the Minotaur, in a sexual way.
Meanwhile Zoe is also making stupid choices and generally setting herself up for more problems. She has contacted Kyle's mom and met with her. Feeling as though she can help both Kyle and his mother, Zoe decides to bring Kyle back home, with disastrous results. It comes to no surprise what happens with the situation, especially when its revealed that Kyle and his mother are in an unwanted, on Kyle's end, incestuous relationship. Kyle, in his Frankenstein's Monster sort of way, musters up a hearty “no” as his mother again tries to make another advance and smashes her face in with a trophy.
Again we also revisit Cordelia and her fertility issues. The ritual she and her husband attempted last week failed to take and she again seeks the counsel of a doctor. The doctor informs her that she will be unable to have a child. Cordelia is distraught enough to seek magic from Marie who denies her because of Fiona's actions.
So far American Horror Story has been very underwhelming and the fault falls to the writing. Much of the rest of the show works very well. Its beautiful and extremely well acted, if the writing were to improve the audience would be given a show that's truly close to perfect.