Rorschach doesn't have much of a role in this issue, which didn't bother me as this book is titled Nite Owl. On the contrary, his scenes felt out of place, since his story has no obvious connection to the current plot, and he has zero interactions with Dan, though all signs point to a reunion of this odd couple in Issue #4.
The art continues to be fantastic with its blend of modern styles and the classic Watchmen style. We're still getting weak action scenes with cutaways that drastically shorten them. While this is a disappointment for those of us wanting to see Nite Owl kick some a--, the artistic team makes up for it with Nite Owl and the Twilight Lady's bedroom scene, which manages to be sexy, awkward, and funny, without being graphic. Dan's facial expressions (no, not like that; get your mind out the gutter) add a lot to the humor of these scenes.
What Nite Owl #3 doesn't have is plot. There is a macguffin that leads to Twilight and Nite Owl's sexcapades but it's easily missed, and if you're like me, you'll have to look back to Issue #2 to remember what the hell they were investigating in the first place. There is an attempt to show an important connection to Watchmen, but it feels unnecessary and made it hit home that Nite Owl is not a must-read story. You're not getting some added exploration of Watchmen by reading this, what you're getting is a bit of fluff, which, while entertaining, is not particularly deep.
I'd also like to take a moment in remembrance of comic book artist Joe Kubert who passed away in August at the age of 85. Joe was one of the inkers on Nite Owl, working alongside his son, Andy, who handled the pencils. He was best known for his work with DC on Sgt. Rock and Hawkman, for his work on Tales of the Green Beret, and for founding the Kubert School for comic book artists.