Yes, but all of that is also a sign of a relationship in its earliest stages of infatuation. There's also something a little formal in his actions when Margot shows up unexpectedly. With something even a little more established, Giles would be less with the charming and far more with the casual warmth. In short, Giles has a crush. But since Margot is likely very interested, it's probably not long before they are formally in a relationship. (Actually, I do honestly know what's going on here, but Buffy doesn't, so it didn't make it into the fic.)