I adore the ending of this episode, it's probably one of my favorite endings in the series. I thought it was clever how the writers gave Squidward what he wanted while still giving him the punishment he deserved for what he did to SpongeBob. Plus, Squilliam's appearance was great. I love any appearance by Squilliam, mostly because of how rarely we see him, and although his appearance in I Heart Dancing was short, the writers made the most of it. He was hilarious, and his over-the-top criticisms and training methods served as a great parallel to how Squidward was treating SpongeBob earlier. That's how you do karma, writers! Remember that!
Unfortunately, the rest of the episode is mediocre. A couple of jokes got a laugh out of me, but more because of how random they were and not because of any actual wit, so that lowers the replay value of the episode.
Dat ending, though...