Well, it turned out well with somewhat revealing his feelings like that. Iori seemed to blush, and run away like she usually does, hopefully not due to a misunderstanding. Maybe he's finally starting to realize that it'll be better if he just tells her how he feels.
Izumi showing up like that was somewhat unexpected... but I suspect that she fell for Seto, especially after learning that they go to the same school. She was probably hurt when he denied her feelings for him. Seto IS a better guy than her ex, despite his faults, and he helped her and was caring without having ulterior motives.
So, she's probably going to tell him that she really does love him... and maybe try to trip him up with some seduction/kiss/etc. I just hope that it doesn't cause a misunderstanding with Iori because she's there, or that he doesn't get all confused again.
Their age difference is also a bit troubling, 2 years while he's at college is pretty difficult.