My main question from this episode: 'Who did Joe ##### off?' Because there's a very real argument that he was sent back into the hotel to die.
From all indications, Janet was given the same assignment Joe originally received: kill your neighbor and you're out of here. Joe did as ordered: Janet shot the camera. (Arguably the real reason for Joe's devotion: I must protect that which is better than I was.) Joe was placed as Janet's neighbor -- which means that for Janet to pass that recruitment test, the Sponsors lose one previous operative. (Joe's clothing at the time wasn't exactly screaming bulletproof vest -- and even then, you can never guarantee where you're going to be shot.)
So did someone want Joe dead and provided a very convenient -- not to mention ironic -- method of demise? If so, what was the backup plan? What's happened since that they've decided the only thing to do is reprogram him -- effectively a sort of welcome back into the fold, or (from the previews) just sending out their executioner?
Did the Sponsors believe Janet was going to 'fail' that test all along?
What was surprising was to discover that this whole set-up was only to find the right people for the jobs that the organization offers! Isn't there enough unemployment?
The mind-manipulation techniques are designed to trigger breakdowns: once you break something down, you can try to rebuild it in something more fitting to your targeted image. (See any and every boot camp ever.) So the town as recruitment tool doesn't surprise me. In some ways, it's a roundabout technique -- but it can help when the targets effectively convince themselves to join.
As for unemployment: the Sponsors have the best interests of the world at heart! That means creating jobs!