I remember when i watched this episode for first time and even now i view it equally enjoyable. I liked way in which Rudy mixed dancing with pokemon battles and his interest for Misty was nice unexpected twist causing jealousy and anger with Ash wanting to be noticed which led to conflict and jaundice.
It was strange but amusing that two OI gym leaders got attracted by Misty, writers were definitely more propitious to romance back than.
Battle was good too with bonus points going to episode for Rudy using Starmie(one of my favorites). And thanks to Misty motivation Ash managed to put himself together with Squirtle learning hydropump. Overall this was good and relaxing episode.
To be honest, was it? Ash is likely going to continue traveling on endless adventures, while Misty still hasn't left the Gym in three generations now.
If Misty had stayed with Rudy she might have had a happy ending.
I could see Misty in future when problem with substitute gets resolved going on journey to advance her dreams, catch new pokemon and learn new things. She is adventurous, likes to travel and explore making clear how she never gave up from goal of water master putting it currently on hold due to obligations. When opportunity arises though she will probably leave to make further progress following foot steps of Wallace, Cilan, Fantina and several other leaders which leave to grow stronger.
In reality fact that writers themselves portrayed Misty disappointed about returning to gym making clear how her goal is to become water master with gym not being on list of desires was proof in itself how situation with Misty was never cleared up with story being left hanging in air.
If Misty stayed with Rudy she would never had chance to explore pokemon world as much as she was able to Ash, learn more about water type and do steps toward her own dreams. Im sure Rudy was wealthy enough to provide her many things, but money cant buy happiness.