Yes, that is a great episode. For some reason I never really appreciated it in the past, but I put that down to the fact that I often have a problem with episodes that take place outside the comfort zones of F & N apartments, KACL or Cafe N. Roz is great and Niles has some great deadpan lines such as the one you mentioned or "I started to make my way over, then a waiter came over, and by the time I got the champagne out of my eyes, she'd disappeared into the crowd".
I have recently taken to watch some series 8/9/10 episodes, so it was Hungry Heart and Docu.Drama for me yesterday. I can't really agree with the rather good reviews on this website for HH as I found it rather flat and the sight of Daphne not eating but literally stuffing her face quite awful. Not to mention her hideous clothes and Niles encouraging her by bringing her even more sweets.
DD wasn't any better. I generally dislike celebrities making guest appearances, but I have to say I rather liked when John Glenn was prattling on about what they saw in outer space and making impressions of aliens. F and R conversations throughout, however, are rather boring and repetitive. But then it contains Niles kite flying (with me forever wondering if the actor wore some protection. I remember the bars from my school gym classes and that was painful enough for the girls, let alone the boys). Plus it contains one if my favourite quotes: "every time I offer her an olive branch, she snaps it in two, sets it on fire, and writes "NO" with the ashes!" Love that image!