I agree with your opinion.  It would be more interesting to play their history through flashbacks.<br/><br/>I don't think Arrow would be perplexed in the sense that he's puzzled over how he lost a battle.  In a battle against Nicole, he'd probably be perplexed about the hows and whys in her power acquisition, power usage and affiliation.  He'd also be upset because the pressure of keeping a secret identity would once again foil his actions (Michael would probably believe that Nicole would cease attacking him if he revealed himself to be a former acquaintance).