The Gibbon generally agrees with you over Buffy. Last episode, the Gibbon suspected that Giles is either dead, or had a dead/alive again moment like Buffy did, and is in fact The First. Best explanation for why he was so unhelpful last episode, although he seemed more useful this week. The Gibbon is still watching him carefully to see if he ever touches real objects or people.

He appeared in the same room as another manifestation of the first this week, so either it was a whopping continuity error or your theory is broken (or the first can project multiple simultaneous manifestations, which seems unlikely).

Which still leaves us needing to explain Giles escaping from under a fast moving axe blade, of course !