Panel 2: Mike looks like he's disparaging his own story. Yay that there's continuity between the letters and the strip. Boo that we're in for a week of Michael the Freaking Genius instead of finding out what Liz is up to.
Panel 3: A COMEDY?! Forget the continuity, then: the letters made it sound all emo and tragic. What the hey can be comedic about "a desolate farm in central Alberta"? The chickens all talk, and build a plane to fly away in, maybe?
Panel 4: Well, that's a common dilemma. Elly, you don't have to look like you're going to throw up. Still, if he doesn't have an ending, then he can't really say he has an outline. And at least we didn't go immediately to "Oh, Michael, this is the greatest story ever written!!!!1111!!!!"