Well, I'll say that TBW didn't always follow logic or feasibility, but I think part of that is viewing the series from the perspective of the computer/Internet age - or maybe it was that way during the 70s as well.
As much as I don't believe in the supernatural, I have to say that I actually like the twist this episode took. I think a counter-organization would have been the more predictable route for a series like this to take. But TBW was more concerned with the human condition, and I think this episode reflects that.