Terry being gay was the show's worst kept secret to the point that I'm genuinely shocked that they just came right out with it. Cleveland being so closed-minded feels out-of-character for him, though, so that rubbed me the wrong way. I'd expect that sort of thing out of Stan Smith, but not out of Cleveland Brown. Although Cleveland's epiphany moment was hilarious.
For the sake of my own sanity, I'm ignoring the B-plot of Justin Timberlake as a booger. Someone really thought this was a good idea.
Scratch the booger B-plot and this is a pretty decent episode.
Cleveland: Aha! I knew it! You hate my coffee! You lied to me! You're a liar! Junior, imagine her pants on fire!