I haven't had time watching the episode yet (though it's on my harddisk) but I can agree with you on Lois. Her being a journalist is certainly surprising in the Smallville universe and not being employed by the Planet seems just wrong!
On the other hand, I don't want her to go away, because what good female cast would there be left? While Lex certainly is an interesting character, this whole Lex/Lana stuff is so boring. Without Lois, only Chloe would be left and that'd be another disaster waiting to happen. For the whole fifth season, Chloe was nothing more than Clark's confidante, research machine and provider for some rare episode plots. Changing from that position to lead female on Clark's side, no that wouldn't go well
