I really need to catch up on the recapping.
Morgana succeeds in nearly lighting the whole castle on fire with her mind. She is understandably rattled. Of course Uther eschews the normal explaination of natural causes and jumps to the ZOMGMAGIKS!!1! immediately. He seems to think about going down the "Gwen nearly killed us all" route before Arthur jumps to her defense, earning himself a smile and hopefully a lot of future lovin'. Uther marvels at someone being able to get past the security of the castle. I would marvel more at someone NOT being able to get past security as castle security has SUCKED from day one.
Merlin is baffled by Gaius's inexplicable reluctance to tell Morgana she's not going crazy. Understandably, Gaius is between a rock and a hard place. It's one thing to hide Merlin's magic from Uther who has little contact with him, it's another to hide Morgana's. Gaius seems to think the best route is denial with her. Unfortunately for everyone, the Cryptic!Dragon seems to think the same thing. Of course, he's obviously gotten himself a copy of some Lawhead or White or Mallory or something. I personally don't see the Dragon as a force of good or evil. He just IS. He knows what's going to happen, but Merlin rarely listens to him anyway, so whatever's going to happen will happen.
Morgana runs off to the Druids with no weapons or common sense. Uther orders Arthur to kill the Druids. Arthur seems to have some problems with that, but doesn't say anything. Morgana gets attacked by giant scorpions and before they can rock her like a hurricane, she is saved by Mordred and friends. Oh GOODY, the creepy kid with the weird powers and revenge issues saved her. Morgana doesn't want to leave, but the choice is made for her when Arthur's men attack the camp. Mordred gets a SECOND father figure killed in front of him. That'll help the rage issues.
Unfortunately for everyone, Merlin doesn't tell Morgana that they're more similar than different and Morgana makes some cryptic comments about understanding herself that I'm sure will come back to bite everyone. Meanwhile, Arthur has thought Merlin is crushing on Morgana this whole time. It says something that Arthur doesn't tell anyone and tries to help in his own way. He gives the old "you'll never work out because of your social status" speech, which is sadly and obviously more for his own benefit with Gwen than Merlin's with Morgana. The "can't even be friends" part is probably the saddest, because Arthur doesn't even know he's crossed that line, but he has. He's in love with Gwen and Merlin is probably the closest thing to a friend he has. Arthur is the last one who should be talking about status, especially because Morgana easily accepts Merlin and Gwen as her friends without thinking twice.