I agree that the song is awesome when used correctly (like Masamuneehs said). Saying that, I think it was used perfectly in this episode. It's also my favorite song on the OST (right next to "Life is Like a Boat").

Also @Frogking: I don't see how imagining it in Japanese makes you hate it any less. Frankly, if you hate it just because it has lyrics, the language doesn't matter - unless you just really love Japanese so much that you get pissed off when it's not being sung in anime.