The power level is why Raye and I have expressed reservations about him being the "God of Stories". Near omnipotence trivializes most conflict. It's possible to do character driven arcs with such characters (for instance, Sandman, which is well worth reading, if you haven't); however, it's difficult to put such characters into teams. Also, such character driven stories are, imo, a contender for the pinnacle of storytelling (another shout-out, this one to Incredible Hulk). Imo, managing such powerful characters is why Strange was nerfed and part of the reason why Odin's a jerk (without trying to get into arguments about whether or not it's consistent with past characterizations). But I'll stop myself from continuing on this subject, we've had discussions on this board about it a few times before.
My first thought towards the end of the issue was that Thor was going to be so sad once he finds out Kid isn't actually Kid and may not be permanent. I agree Loki did the right thing in going to him for help/to warn him, but ouch.