As soon as Maroni started wheedling on Fish and would not let up, I knew he was going to bite it.
I do like that Falcone isn't so power hungry to ignore facts. His speech about Gotham needing a good, honest lawman to bring the city to some semblance of control was simply sublime. He knows that the days of criminals running Gotham are coming to an end despite even his own power and influence. It has grown out of his control and needs to be brought to heel, and he knows that Gordon's the man to do it. Why? Falcone recognizes defeat and knows how to pick his battles. In the short time that Gordon has been there, he's already gotten some of the police on his side and isn't afraid to go after the corrupt. He's proven to be hard to kill and impossible to corrupt. Falcone is simply making the smart move and getting out while he can. Maybe one day he'll show back up, but for now, he's out.