I just watched this on Netflix last night and I agree that this should have been the series finale. On a case, Michael is mortally wounded, and loses his zeal to continue the work that Wilton Knight chose him for. When he gives Devon notice, Devon finds Stevie Mason (reoccuring character played by Hasselhoff's then wife, Catherine Hickland), who knew Michael in his past life, cares for Michael in his new life, and asks her to look after him. However, the people that shot him will stop at nothing at another chance to kill him.
This is one of the most emotional episodes ever. It really shows viewers a Michael Knight they have never seen before, as he starts to believe that one man cannot make a difference. It also shows how the whole Foundation family (Devon, Bonnie, RC3, and KITT) truly feel about Michael. Unfortunately, this was not the final episode, as it was placed in the middle of the season. This would have made a great series finale, but I guess NBC thought the show still had more seasons left in it. If you have the season 4 set on DVD, save this one for final viewing. It's worth it.