Season 2 introduced some great characters but overall it felt like a messy filler arc.
As for the KorrAsami, I think the hand holding was the furthest I would've bought in. They did spend more time together and became closer in the last two seasons but as far as we know they weren't an item until the last episode or so. The pairing didn't come completely out of left field, but going full yuri at a moment's notice would've been off-putting. Not that I would've been upset.