Nice writeup Pete.
Yeah, Grabil and the song energy component of this chapter drive the "fantastic" aspect in Macross 7 into overdrive. A huge monster that seems straight out a Godzilla movie, that can shoot Macross Cannon like pentagramic rays out of his tail, is definitely new territory for Macross. Not to mention that Basara and Mylene's combined song energy output can match it's power.
I wonder if Dr. Chiba's explanation of 'song energy' is at least partly based on some sort of hard science, or if it's just pure mumbo jumbo. In any case, his Lynn Minmei fanboyism is second to none. I found his little dance moves were rather hilarious.
He, he...Basara got a cameo in your HS story! I wonder what Yuki Nagato makes of that.