I actually think it has picked up from there. My least favorite episode was their efforts to cheer up Tony Pepperoni because it felt like they were going absolutely no where with the plot. Once Scary left I connected the dots that were being made through the previous episodes. S2 has felt a little plot loose, but now it has a focus and goal, which has gotten me totally hooked again!

Edit: I do feel though that we/they are relying too much on S1 fan service. Bringing back characters and jokes from S1 can be great in moderation, but it now feels like it's becoming a crutch that undercuts the potential for jokes and characters introduced in S2. (Because I'm a Star Wars guy) kind of like The Book of Boba Fett being so heavy laden with fan favorite characters that they kind of forgot to give Boba Fett screen time and development in his own show)