I feel that the reason why they didn't begin with the 'prologue' is because the first episode of an anime normally needs to open up the main plotline. That being said, I enjoy where the small 'saga' is placed, right before the bigger gem quests.
I have to say, this and episode 14 are my favourite episodes. <3 They're pretty well done (no off model, well directed), and have just so much emotion! Another thing I like about these two episodes is the mood - the sepia, warm yet hopeless feel. It's a bit of a shame this sort of lighting didn't appear as often in later episodes, as I really think it captures the dark atmosphere.