That was Mike downfall, he thought Walt was mild Mannered like Werner. He didn’t understand Walt was levels above him in thinking. Walt was a king dealing with pawn in Mike just like Gus dealt with Mike.
On some levels I agree but I don't think Mike can be written off as just a pawn, and I think Mike realized Walt's levels of intelligence at the end of season 3/beginning of season 4.
I think Mike was actually smarter than Walt in some ways because he could see the bigger picture of the criminal world. Walt was brilliant but he did get lucky with some of his plans, but Walt was still impulsive, allowed his ego to get in the way, and was often reckless. If Walt could have set his ego aside I think they actually could have worked together quite well. They both thought of things the other didn't, and I may just be reading your post wrong, but I think Mike is much smarter than he's sometimes given credit for. He may not be Gus/Walt criminal mastermind, but as far as knowing street level shyt and seeing the big picture, he's as good as they come.
I would say he's more like a knight on the chessboard than a pawn.
The Werner scene was heartbreaking.
The look on Kim's face when realizing Jimmy was a piece of shyt.
That ending
I can never tell with her though. Every other time before when I thought she was going to distance herself from Jimmy, she either doesn't or actually gets turned on. But I think this was the moment where she finally is going to start distancing herself.
EDIT: Sorry for all the consecutive posts brehs. I missed the past 3 weeks of episodes, watched them all within the past 24 hours, and so a lot of thoughts are kicking around in my brain.