This episode is actually quite relatable for me. Again, it reinforces the fact that nopony, not even the ruler's protege and Princess of Friendship, is perfect, although the actual interactions/dialogue etc. don't quite accurately reflect reality (of course, you have to simplify some things for kids, who are, after all, the intended audience to begin with).
I'd like to think that Equestria is a somewhat more idealistic depiction of Earth, though it is definitely not a utopia. It's simply a more savoury society where true kindness and friendship exists in greater abundance than it does here.
I liked how Moondancer acts as an image of what Twilight would've become if she hadn't been called to make friends in Ponyville. The similar mane/tail style particulary reflects this well.
Great episode in my opinion.