Considering the time of the flashbacks, it was bound to tell the story the way it did. Nothing to do with indulging in some people persecution complex, here. It's a little too after school special for me, and not one of my favorite episodes, of the series either. And the ending was kind of corny... But it's important to understand the main character's background. And be introduced to the new Angel investigation office. Also the demon feeding on fear and paranoia, though already done in previous shows, was an interesting vilain.