TV Tropes discusses the Cerebus Syndrome where a lighthearted piece of art morphs (some would say jumps the shark) into serious drama. Who knows. Maybe Act III is more analogous to Trapper John M.D. of AfterM*A*SH.
I actually like the current car crash storyline, but it's moving like Quaaludes-laced molasses. I don't think Funky has given up the ghost. Masky McDeath hasn't shown up yet.