IGN:
Among other things, this week's episode of Arrow was notable for introducing master assassin Deathstroke to the fold (not counting the cameo of his mask in the pilot). Sure, we've seen a couple minor DC villains in the form of China White and Deadshot, but Deathstroke is a major step forward as far as integrating the full scope of the DC Universe into this show.
Surprisingly, Deathstroke was almost a afterthought amid all the other major developments in “Damaged.” While the flashbacks to Ollie's life on the island were far more integral to the plot this time, the real villain of five years ago turned out to be the stately Edward Fyers. As I recall, Fyers is more of a mentor to Ollie and his allies in the comics, so this was a bit of an interesting role reversal. There's still plenty we don't know about Fyers' purpose for being on the island and his relationship to Ollie's hermit friend (whom we now know is called Yao Fei), but these flashbacks are growing more compelling every week. The way these scenes were inter-cut with the present day material was also more effective and purposeful than usual.
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I was wondering who that villian was...now I know and can get on with the story...it was driving me crazy. Such a good episode. So much happened but now so many more questions on my mind.