#195 starts with the Power children finding their parents have forgotten them. This is part of a sinister plan by the Morlock Annalee to abduct them, with the aid of Masque (who has reshaped their faces), and Beautiful Dreamer (who has the ability to alter memories), and presumably Sunder (who has the power to steal furniture). Katie Power - the youngest - avoids being captured by the Morlocks.
So, this is another Morlocks stealing people story. So far they have tried to steal Kitty Pryde, Angel, Kitty Pryde (again) and now Katie Power. Their existence was problematic at best already (as no realistic effort has been made to extend a hand to them by the heroic characters), and now they seem to be acting as stand-ins in unsavoury tales about gypsies. We have privilege hierarchy here: the respectable heroes (the Avengers as typified by Captain America), looking down at the X-Men, who themselves look down on the Morlocks. Callisto has some sense (I suppose she knows she'll get it in the chest if this continues), and puts a stop to it, so that's all sorted. I count at least 40 Morlocks on the front row of that crowd, by the way. There must be hundreds of them.
Our X-Men in this issue are Wolverine, Rachel, Rogue and Shadowcat, which is oddly enough (bar a couple of members of the O5 and Gambit, who doesn't exist yet) the initial core staff of the Jean Grey School. Nightcrawler is off having a solo series. Wolverine makes the decision to place Shadowcat in charge, which is a bit curious. On the one hand, he's clearly not ready for leadership, and doesn't really want people to rely on him. But his ability to do this will means he sees himself as a king-maker. She manages it well, though, and I'd say she's being written as a competent 17 or 18 year old (#196 will say she's 15). That trip to Japan sure aged her!