Yeah, it was a lazy line, especially from an Observer.

I agree with you that changing the story to be about Peter instead of about Olivia(s) makes it less than what it has been for the first two seasons. I thought we had made some of those larger-than-life personalities in other SF shows before - Commander Ivanova, Officer Sung, Major Kira, Toph, for examples - but there aren't enough of them, and especially not as main characters, like you said.

I wonder, with Olivia, the way she said she was going to let the other memories overwrite her made me think of it as a "Well, it can't be helped, so I may as well stop fighting it, and as a bonus, I get to fall in love with someone, so it's not all bad."