I'm going to go ahead and post this ALTHOUGH IT CONTAINS *SPOILERS*!!!!!!!!!!
I avoided some things in this thread because I hadn't caught up until last night, hopefully my disclaimer helps those who haven't watched through episode 7.
But to your point, they're still introducing characters. I guess they've done enough with the existing characters that in the past couple or three episodes they've been able to rev up the drama. For example, in episode 7 when Ned starts trying to figure out who is the rightful heir, he talks about Stan, who as far as I can recall hasn't been introduced. But his younger brother has, whose name escapes me (Renly??), and Ned discusses the situation with him. Until the last episode I had no idea the relation of Renly to Robert.
But when they "re-introduce" the character so to speak, it appears pretty seamless.
This Baelish guy is really a likeable character, although he's the ultimate snake. I don't know why I find myself liking him in the series. Pretty impressive that the writers and the actor can actually make that guy come off likeable. Guess that's because Baelish is so good at what he does. He fooled Ned, and he fooled me.