Agree with all of the above, Walt's ego is way out of control. However he seems to be shocked at what he has done with Mike, he started the episode playing Heisenberg with his new "friends" but now is seeing the grim reality of the choices he has made.
More of a general comment about season 5 so far
I'm still really enjoying this season, I wouldn't say it is a disappointment in any regard, but does it feel more like an extended epilogue to anyone else? Maybe knowing that it will be two fairly short half-seasons is making me feel like they don't have enough time to build a new storyline up properly, after the epic Gus story arc from season 3/4 was concluded.
"Only the madman is absolutely sure." - Robert Anton Wilson