They killed off some major character, and that's always good. Means the show is still moving forward and not coming to a stop like it did at the farm (I was afraid of that when they secured the prison at the start of this ep), but they really managed to grip me again.
Yes, Rick's crying was very weird. The way he bent over looking at carl as if he wanted to ask: 'Did you know about this?' and then just yelling: 'No, no, NO, no, NO NO'. It was odd and it killed some of the emotional immersion.
From a plot point of view, why save that baby? Lori, annoying as she was, was a lot more practical to have that a baby. She should've just taken those pills in season 2. But there's no arguing over this, characters in shows do dumb things (blame the writers, or in this case, the comic) and at least we got rid of Lori.