Roz's Krantz & Gouldenstein are Dead - S4-E15
Continuity mistake: Frasier is on the couch talking to Niles. As he says "I simply release my humble words", his hand switches from being around the middle of his bottle of water to being around the neck, with no time for natural change.
Answer: In the last episode, they explained that Tossed Salad and Scrambled Eggs is a metaphor for the mixed-up people to whom Frasier dispenses his radio psychiatric advice.