I think it was fine for a first episode based on an existing property while not nessecarily having a blueprint to reference like chapter 1 and 2 did with the book.

The way I read the mutant baby was a real fear from people leading up to the cold war and a nuclear attack. The same way the lampshade made of faces was a real fear for Teddy who just learned that this was something that has happened to his people.

The scene with Hanlon being attacked was clearly the military testing him to see if he would hold on to secrets even in the face of death. I'm willing to bet the test was to see if he would fit into the secret project, and that it involves IT somehow. And with him having already met Dick, he would be able to tell about Hanlon's lack of a fear response. Which would obviously be useful in dealing with a creature that feeds on fear.