Yes--it's the halfway point, but from a ratings perspective it doesn't make sense. The most obvious thing to do would have been to have it last week when ratings were going to be low due to Thanksgiving! I can't help but think that it's to set up something dramtic that happens the week after. In S2, they did it to whet our suspense when Jerri was finally booted. This time, almost all of the players everyone hates are already gone. Perhaps something really dramatic happens the week after?

• RE: Why is the recap episode happening this week?,Rose Red, 10:40 PM, 11-27-01

The Recrap is happening now, because the November sweeps period is over. Thanksgiving was still part of that, believe it or not. This is one of the crucial months for TV when advertising rates are set, based on the ratings. Which haven't been AWFUL but considering it's Survivor, it's not been terrific.
The Recrap is also simply another way to extend the length of the series, i.e., make more money. Which is why they created "Survivor Insider" and why all of network television exists.
Last time out the ratings for S2's recrap, and it really was that, stayed surprisingly consistent, even though there was virtually no new footage.
Let's face it, Survivor is a show that you cannot re-run. Once you know who's voted out, the suspense is totally gone. And Survivor thrives on suspense. Instead of a whodunnit, it's a who's-gonna-get-it?