LW, I agree, this episode was to reveal Iris' dark side, the lie could be as simple as that and/or show manipulation as Sofia indicated.
There is so much in the river seen. We know they came from Russia during a time when Germany was invading, therefor Irina kept refering to the 'assassins'. But it seems someone was after them in particular. The kids are well dressed for the time perod, I wonder if they were from some sort of 'royal' family? Who did Alexei kill? It's hard to say, he apparently thought he was saving Irina's life. Could it be the evil father hired assassins to kill them so they fled on a train? Whew!
If their mother had at least told them that, it would be a good reason to never trust anyone but 'a man of God', and they sure didn't recognize Justin to be one of those!
Heeven, Good analysis, Justin called her to say, "You always knew what was inside of me". I take that to mean his powers, because she saw him kill the stranger on the river bank, and who knows what else.
Now, Lodz striking Lilah upon recieving the news of Ben healing Gabe's wing. Definitely revealed a mean streak in him, I don't think that was the absinthe talking eventhough it will certainly destabilize your actions.
Libby got dupped by Sophie, the chariots on the cards were reversed, that means you are going nowhere! Sophie just wanted away out of the Carnivale.
Not sure about Rita's hold on Felix, is it just henpecking or is there something more, or is it in Managements grand scheme that certain people will never leave the Carnivale? I believe Dora Mae was the third child they have lost, don't know the significance of that either.