Zhang had both easier jump content and had other problems that have been pointed out in this thread, such as lack of speed. Osmond has made visible improvements since last year, and some of the other skaters didn't perform up to their potential. What precisely was "mediocre" about Osmond's skating? That was a strong all-around performance.
Really, Canada has a strong reputation in the sport, but so do Japan, Russia and the United States. The only competitor who isn't from a powerhouse country in this sport is the current leader! How can you look at that and claim the the scoring was based on country reputation?
After viewing the performances, I really don't have much to quibble about re the placements. I thought Zhang might have been in front of Lacoste, but I could understand arguments as to why she isn't, plus the scores are so close. Gracie would have likely placed around 4th or 5th had she skated cleanly. Even had Gracie not made the second jump mistake, she could have landed ahead of Zhang and Lacoste at least even with having only the first error on her 3/3 combo. I can see why Gracie was disappointed in the kiss 'n cry, but she needs to get over it fast and just be determined to come out strong, determined and patient in the fp. Surely it was nerves that tripped Gracie up -- that forced grin she had before starting her program revealed nervousness. It will be a good experience for her.
There is always politics and skaters' reps involved in the scoring but the extent to which those factors play a role is hard to prove. What the skaters actually do on the ice is likely the most important factor.

As far as Elene G, I think she deserved to be scored even higher. It's great to see her with beautiful music, costume, and great confidence as well as deep emotion and expressiveness. She's a natural re presentation skills, but now she's putting it all together. Bellisima! It's fair to point out though, so what that Elene isn't from a powerhouse country,
she has a powerhouse coach who is Canadian to boot. Ha ha, there's no doubt Elene G deserves to be in first place with that program!
Osmond is a wonderfully refreshing spitfire. She skates with great confidence which is soooo good to see in a young skater. The judges love to see skaters skate clean programs with confidence and panache, and that's exactly what Osmond delivered in her performance. I'm not that enamored of this style of program/ music/ costume, but Osmond really made it work for her and she was able to maintain audience interest throughout because it was obvious she believed in her program and was having a blast. She needs to develop maturity and that will come. Right now she seems to be on track, right place, right time. I wish her well and pray for her no over-hype nor over-pressuring from fans and Canadian fed.
I feel for Ksenia. I thought she skated beautifully last season but was not given a great deal of credit. She was upset about the one mistake she had in her sp here, but I loved her program. I hope she continues to push hard to work on her weak areas, and keep going in the lovely direction she's going with her skating. The difference for me re Ksenia and Elene G is that they both have absolutely gorgeous positions on the ice and they feel and interpret the music well. Although Liza T has great jumps and also has gorgeous positions, she needs to mature a great deal more, as does Sotnikova and Shelepen. I think the sp costume for Polina was awful and obscures her natural beauty. I don't get all the obsessive adoration of the Russian baby ballerinas. They need a chance to grow up and develop more maturity and competitive experience without all these exalted expectations on their shoulders.
I was not fond of Kanako when she first came on the scene, but she improved last year with a bit more maturity and attention to some technical weaknesses. She can be lovely, but I don't find her exciting. Akiko is a wonderful skater, but she has seemed so far this season to be having a bit of technical trouble with her programs. Both of her programs seem to be big departures for her, so maybe that is part of the challenge, in addition to her trying to live up to last season's success. Obviously, Akiko could still be in the medals here, or even win should she skate lights out and the top ladies falter in the fp. The fp should be very competitive. The ladies are off to a kickin' start this season.
From what I've seen, I wouldn't mind the top three staying as is, with Gracie moving up to fifth and Akiko in 4th (but I think Akiko is likely to move up to medal position). I hope Caroline skates a clean fp and moves up at least another spot.