Very interesting episode. I love that the show isn't scared to dive into controversial topics (burning of kids and rape) because universe the show is set in is indeed dark and filled with sadness. I predict that burning his daughter will drive him into eventual insanity where he will murder Melisandre.
What always amazes me is the fact that, whenever the show depicts some form of rape (such as a few episodes ago with Ramsey and Sansa), all you see is outrage on the internet from Gawker sites and their ilk because rape of female characters is such a supercharged topic.
Then a few episodes later and Stannis burns his own screaming little girl alive, and everyone's like "meh, that was a rough episode."