Ash getting Squirtle was a bit lame, honestly. Misty would have been the obvious choice, and knowing that she and Ash fight over Totodile later makes it worse that she doesn't end up getting either. It would have been so cute for her to own a Squirtle! She did spend a god bit of time with it during the episode, too. But boy did they hammer in "Ash loves and cares for his Pokémon!!!" in these early episodes, jeez.
This episode was jarring to watch with all of the guns and explosives included, but looking back on it as an adult, it reminded me of an old animé like Cowboy Bepop or something in the way that Jessie and James ambushed the store and tried to run the Squirtle Squad out of town. I like that a lot about this episode, honestly.