I agree... they definitely need to bring the show back down to a more "small-time" level.  In an interview with the producers, I read that they are trying to portray the evolution of Nancy as a "gangster".  That would explain why seasons 1 and 2 seem more "small-time" than the first few episodes of season 3.  But come on, machine guns, dead DEA agents, etc... too much.
Although, the series is still hilarious as ever... not to mention it's all filmed within a 10 mile radius of my house.