Okay, your solution sucks because I like mine way better. Girl Stinky is actually the Crown Princess of the Merpeople of Atlantis. She's been trying to gain control of Stinky's Diner because it sits atop the Gates of Beyond, a mystical series of rivers that lead to Hell, the Elysian Fields and Big Rock Candy Mountain. Atlantis, meanwhile, has the Great Garbage Kids Patch sitting on top it, not to mention enough mercury to fill 20 million CFLs, so the Atlanteans are looking to move, hence their interest in the Gates of Beyond. Girl Stinky, whose real name is Princess Surströmming, has been paying the Mole People to dig a tunnel from the mystic waters to the Hudson so that her people might make the Great Migration (the Mole People were paid in Ootoro; turns out they're into sashimi in a BIG way), and was chosen to lead this dangerous mission because she's half-Human, meaning that as long as she stays out of the water she has legs instead of fins (now you know why Stinky named her after himself).

The rest of your story is fine, but mine leaves Season 3 open to introduce Princess Stringaming as the main villainess AND her Nemesis, Buster John, the Hobo King of Big Rock Candy Mountain. So I guess your version doesn't technically suck, as long as it's sandwiched inbetween the different parts of my version, and you somehow bring Sal back to life.