Not only is there a Ruin/Preservation vibe (props to Gher, above), but there is also a Forsaken/Chosen aspect. One of the big mysteries to the first season was why some people had been selected to be kidnapped into the Others camp (like Cindy, Emma, Zack, and other assorted characters), but others weren't. Seems like among the 'Forsaken', there are the Chosen Forsaken (Hurley, Sayid, Sawyer, Locke, A Kwon, and Jack) and the UnChosen Forsaken (Kate, The Other Kwon, Claire, Bernard, Rose). There's a third group, the UnChosen Otherwise Dead or Missing Forsaken (Michael, Walt, assorted now-dead characters).

Makes my head spin. Jacob has touched Kate--he comes to her 'rescue' when she tries to shoplift as a 10 year old. Taps her on the nose and tells her to 'be good'. Why isn't she a candidate? Maybe women can't be Island guardians (this assumes the Chosen Kwon is Jin). Maybe she's just a plot device to get others to come to the Island (Jack and Sawyer, for instance).

I was somewhat unsatisfied with this episode. Too much teasing, not enough revelation. Sure, the sames and Island guardian thing are interesting, but can we really trust Not-Locke? It's like trusting Ben. You just can't. Oh, and to add to the list of characters the Smokey probably wasn't impersonating, let's add Ben's mom while we're at it.

Ben teaching Euro history? That's hilarious. I also love Sawyer's bottomless knowledge of literature, even if there may well have been many other more closely connected betrayal references to cite for the scene than 'Of Mice and Men'.

As for the alt-world being better, I'm not sure. Yes, Locke is still with Helen, and is at least on speaking terms with his dad, but he seems fated to have his spine broken, and he still went to Australia in a ridiculous quest to go on a walkabout. Doesn't spell 'well-adjusted' to me. Helen's still there because presumably he hasn't developed an obsession with someone/thing else other than walking again.

Hurley is happy, that's nice. Jin and Sun are estranged and he's a jerk. Kate's on the run, Claire is all alone in the world. And pardon the pun, we don't know Jack. We just don't yet. Rose is dying, but at least she is happy with Bernard (I find them adorable as a couple). Is the world entirely better? Hard to say.