The first order of business is Xavier having demoted Kitty Pryde to the New Mutants team at the end of #167, which she naturally resents (having just spent however many months in space with the main team, proving her worth). Call Kitty annoying if you like, but I think she's earned her keep, and just arbitrarily demoting her as soon as you see her (especially after she'd helped save you from a Brood monster) is a bit much.
This issue fails to do with the premise. In particular, it doesn't feature the "X-Babies" at all, making her change of teams rather nominal. It might be fun to see her interact with Dani and gang and come to realise they're not so bad. But in their absence, the only way for this to end is for Kitty to defeat a problem or solve some monsters (in this case some left over Sidri from #155), during which she discovers an alien dragon-like creature (Lockheed) has survived the events of #166 and made its way to the X-Mansion. She's admitted back into the X-Men on a probationary basis, which is more than good enough for her.
Despite the rather immature stomping about, Kitty seems to grow up a lot this issue. She's being drawn very differently by Paul Smith than by Byrne or Cockrum, to begin with - the old costume helps, and she displays a real steely determination when facing the Sidri. The Kitty of Whedon and Cassaday is clearly an older version of this Kitty.
Meanwhile, Cyclops, Corsair and Havok go visit the grandparents, in Alaska. (Cyclops visits Lee Forrester first, who he it is strongly suggested gets off with). Their pilot for today is Madelyne Pryor, who has red hair and green eyes and takes Scott's breath away. And, Kurt visits Amanda with the surprise news that he's alive.