Thought it was a good episode. I kind of disliked how they just killed off Axel. He didn't play a large role, but do they intend to keep any small characters alive like they had done with T-Dog or is there no need for background characters? Personally, I would have kept him around a little bit longer instead of offing him just like that. Doesn't make much sense unless Tyreese and his group return.
I think they will ultimately be forced to accept Merle, but it all depends on who is "in charge." Is Rick over his hallucinations and capable of making decisions because that would be a big determining factor as to how the group reacts. I think Merle will definitely stay, but I don't think it will play over well with Glenn who's the self-appointed leader. I definitely don't think the whole group will forgive Merle, especially Michonne and Glenn, but they'll have to put up with the fact that he's there and they need him and Daryl if they want to survive.