Luckily, Francine (Wendy Schaal) has the wisdom to realize all of this, and is as repulsed by the idea as viewers surely are. Valiantly, she takes up an armored suit and fights Phyllis, a la Avatar, before "she" can sleep with Steve. Thus, disaster and a yawning chasm between son and father is avoided. As long as Steve never finds out the truth, and he probably won't at this point, given how things end.
It may be a silly conceit that would not hold up in real life, but Stan playing with CIA technology is always fun. The fact that his boss (Patrick Stewart) can be just as giddy about it is wonderful. Stan is a very relatable character when he takes out the government toys and uses them for his personal goals. Despite the weird stuff in "Virtual In-Stanity," no one can blame him for this aspect of himself.
The big regret here is that Hannigan's character likely won't show up again. She could make a great, recurring love interest for Steve! True, Hannigan already stars in a sitcom on TV, but surely she could make time to voice a handful of episodes a year. It's unfortunate that this seems a very remote possibility.
Also, Roger (MacFarlane, too) goes on a killing spree to get even with some frat guys who don't pay for his limo service. Watching a limosuine stalk a jerk into the bathroom is freaking hilarious. The subplot even manages to get creepy at times, despite its absurd nature. A+!
American Dad! airs Sundays on FOX as part of Animation Domination, usually at 9:30 p.m. ET, but check listings, as the shows within the block sometimes shift.