When viewed purely as a stand-alone episode, "And Now for a Word" is a bit of an oddball, true. However, I think it mainly serves to act as a counterpoint to the fourth season episode "The Illusion of Truth", and seen in that context it's considerably more interesting.

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In "The Illusion of Truth" we have largely the same situation, with ISN reporters coming to the station to report on the crew and what they're up to, but in that episode ISN has become a Clark mouthpiece and so it deliberately shows everything aboard the station in the worst light possible, up to and including having a talking head psychiatrist on saying that Sheridan has gone mad and wants to become a Minbari. Without the more positive portrayal of news gathering seen here, I don't think that episode would have had as much of an impact.