Sarah and Paul weren't around long - 6 months, maybe a little longer for her. EAS was Paul's shopping channel.
Diego raped Emily several months after this episode. I don't think Valente or Black and Stern knew exactly where to take Diego (as you saw with all the "I don't like violence" woo-woo type stuff). Behr made him a clear-cut villain. I think they also raped Emily to "redeem" her after she'd behaved horribly for a year. (of course when Broderick came in she threw that out the window...)
KMH just wasn't suited to play Emily. After a few years they began writing her as heavy on the neuroses, likely because KMH was so tic-laden, and it just further degraded the character. I found that my opinion of KMH mostly rose or fell based on the man Emily was paired with, which is sad, IMO, when you remember that Melanie Smith gave the character such integrity even when Marland used her as a great big whore for most of Smith's run.