I must admit I really loved this episode. I personally don't think the relationships are moving too fast, mostly because I'm over t.v. shows stringing me along with relationships that 'may happen' and then when the characters finally get together, the show ends. (As much as I love the show Castle, there is only so many seasons you can dangle the 'will these characters get together?' carrot in-front of my face before I just don't care any more.) There are so many great stories that can be told with people in relationships, I blame Disney Princess movies for the idea that when characters get together 'they live happily ever after, the end.'
I see a lot of interesting character development and drama coming out of the Korra x Mako and Mako x Asami thing and I don't think that characters dating is the character-developmental dead-end that many people seem to think that it is. While Korra and Mako are now both aware of each other's feelings I doubt either party will act on them (past that kiss) for awhile. Mako isn't the sort of guy to just dump Asami and start dating Korra, her Father is sponsoring their team and even he knows it will look very suss if he suddenly drops her. It will seem like he was using her and I think he's more conscious of her feelings than that. I also think that Korra has some personal growth to do before she'll let herself have a proper relationship. As JBK405 pointed out; Korra isn't really 'aware' of herself right now, all her life I doubt she's felt like much else than 'the avatar.' But now she's finding that people are wanting to be friends with her for who she is, and liking her for her personality and not just her abilities.
Also I foresee the war against the benders really coming in between any sort of relationship, like the way the Fire Nation war did with Aang and Katara.