The Dany thing is absolutely in keeping with her past - the wizards, Mereen, the Dothraki, the witch who effectively killed Drogo. She is ruthless against her enemies and those who don’t bow to her rule - which, by the way, has only been her design since her husband melted her brother’s head. The city was standing by Cersei by not evacuating, in Dany’s eyes (that had just recently lost Jorah and another dragon and Missandei, as well as been betrayed by Varys and with Jon not obeying her and then refusing to bone his aunt again). She was riddled with grief and anger, and has never exactly been known for moderating those emotions. When she lost Drogo, she walked into a fire.
If anything, I found Grey Worm losing his mind more out-of-character, even with his grief. He and Jon will battle next week. I think Arya will kill (or try to) Dany. I don’t think Tyrion survives. Not sure about Jon. I think the episode was logical - the only thing that disappointed me was Jaime losing all of that character development over the past few seasons. If there even is a monarchy at this point, I would guess Sansa or Gendry will rule.