Although it was hinted in the previous season episode "Moon Dance (1996)" that Daphne (Jane Leeves) is attracted to a man who talks, acts, and even looks like Niles (David Hyde Pierce), this episode makes it even clearer that she has the potential to return Niles's feelings for her.
A distraught Niles says, "I want to kill myself!" just eight episodes before a distraught Roz says the same thing (in "Death and the Dog").