I liked the episode and (surprise) didn't have all the problems Therm did with it. I actually really don't understand why you think he should have apologized to Eddie. First Eddie wants to get a task force to catch Flash, then Flash attacks Eddie, then Eddie DOES get the task force (which Barry would've heard about). Even if Flash apologized to him immediately after he was "cured" Eddie's not going to just be like "oh, well in that case, let's be buddies!" But he did apologize for Iris because he loves her and he betrayed her trust since she did stick up for him when Eddie was saying he's trouble.
I think the things you're glossing over is that: 1) Eddie and most other people still don't really believe in the fact that meta-humans exist (so "sorry I attacked you, I got mind controlled" really wouldn't work). Eddie specifically said he doesn't know how Flash gets to all the crime scenes so fast. All of the bad guys that have been captured are in the star labs jail, not real jail. Most people haven't actually interacted with any meta-humans (Eddie actually wasn't there when the police confronted the bad guy in last night's episode, it was just Joe and 3 random swat dudes), so people are still in the state of mind of just trying to explain what has happened by saying it's something normal (when Plastique died and they said it was just the army testing explosives). And 2) They didn't just pull an Eddie/Flash rivalry out of thin air in the episode just to advance the plot or get the characters into certain situations. Barry is jealous of Eddie since he's dating Iris and Eddie is jealous of Flash since Iris is obsessed with him. Everything in this episode is just escalating their rivalry and pushing it closer to a show down that will happen later this season.
I also don't understand why you're so hellbent against secret identities. Basically any time someone finds out a superhero's identity, it's bad news for them. I don't think telling Iris would really solve anything for Barry.
Also, I like Arrow and am glad that it and its darker tone came out before Flash did. Having said that, Therm, you're going to hate it since you said that flashbacks are the worst method of storytelling ever and that show is half flashbacks.