I like seeing Diane and Alicia becoming friends as well as Kalinda and Alicia getting back to their friendship. Excellent episode.
Maybe Wendy told Will she was really after Peter in an effort to get Will to let his guard down thinking that she's not investingating him after all.
I didn't find it believable at all when Alicia told Owen that she didn't love Will. It just didn't ring true after their long history together back to college days and recent steaminess. It seemed like Alicia and Will viewed each other as "the one that got away" for many, many years and then Alicia suddenly said, "eh, nevermind." I'm not buying it!
So, on a another note, my husband finally watched this show with me for the first time this episode. He really liked it!