It is great to see characters who were undeveloped in TOS get fleshed out. The characters feel real and motivated by their history. It beats interpersonal drama designed purely to create conflict within the crew.
I know Orville was widely disliked by critics for uneven tone because they wanted to shove it in a pigeon hole but variety is where episodal tv really shines. I don't think Orville did this as effortlessly as SNW is currently doing but it had its moments. Given the substantial departure from Discovery and Picard I wonder if Lower Decks or SNW could have existed in Kurtzman's Star Trek without MacFarlane showing there was still demand.
I hope they use the release of inhibitions in the musical episode to delve into the inner thoughts and feelings of some of the characters as they did in Buffy's Once More With Feeling. The characters revealed a hell of a lot in that episode. It would be a waste to back off after this episode and not use what on the surface looks like a lightweight episode to dig deeper.