I’d argue it was a great way to show the immediate effects of “The Batman”. What the trauma of the flooding did to the common people of Crown Point and the power vacuum created by the death of Carmine Falcone. It also setup Penguin’s rise to power which means he will likely play a significant role in the Batman Crime Saga’s future.
From a storytelling point of view, I can absolutely appreciate how the show organically grew the plot and setup Penguin’s roots into Gotham’s underworld.
Eh I think this is where creative storytelling comes into play. James Gunn managed to make a group of C Listers in Guardians of the Galaxy tell a really compelling trilogy. In fact, I’d bet GOTG’s success is the blueprint Sony is trying to do with these Spidey baddies.