"It's a symbol. Whoever wears the hood should lead." Gotham started with a bang this week, actually there were quite a few bangs around 'The City of Anarchy'. This episode in particular is one of the strong points of the second part of season one, every major character made an appearance & made sure to impress us on a different level.
First of all, the concept of a symbolic criminal is just genius, no matter what happens or who dies, Red Hood can still live on, at least, as long as there's a hood to wear.