I also love how he reacted the second she said "Alien" I imagine that as the moment his faith in the law is broken. However, he himself isn't broken completely until he's forced to convert to Christianity, thus taking his religion away from him when it was all he had left.
This harping on one Daniel and the revenge of Gratiano upon Shylock by putting his own saying on him, after stern and upright Justice has doomed poor Shylock, are very well composed; and almost funny as the entire play would be but Shakespeare has too much romance and tragedy in him to write a decent comedy like Aristophanes or Molière!