When Lynch came back for the final episode of that season he refocused it on Laura Palmer and brought back characters that hadn't been seen for many episodes, like Laura's mum or Audrey's brother. They weren't much fun, one being wracked by grief and the other mentally disabled. But that's what Twin Peaks is really about and what gave it staying power.
Everyone (including Diane Keaton when she directed an episode) seemed to think it was this kooky place and the weirdness was the point. There's plenty of fun there, but Lynch really understood it: hence Season 3 which gives you all of half an episode of Fun Dale Cooper before pulling the rug out from under you and reminding you that a girl was murdered and we shouldn't move on from that.
I admit I haven't seen it since the original airing. I would likely evaluate it differently now.