"Live Bait" wasn't a particularly exciting episode of "The Walking Dead," nor an especially subtle one in the way it beat us over the head with the parallels between the Governor's dead little girl and the live one standing in front of him. But it may have been a necessary one, depending on what sort of long-term plans Scott Gimple has for the character.
The Governor from the second half of season 3 is not sustainable as an ongoing character on this show. He's just not. He'd become such a cartoon by the end that the show can't even realistically squeeze just one extra season out of him as the big bad before Michonne sticks her katana through his other eye, or Carl shoots him in the face or Carol bursts out of nowhere to stab him 75 times. So unless Gimple intends to bump off the Governor by the end of this half-season, he is in need of some hardcore character rehab, even if the end result of it still puts him in opposition to Rick's group.