Catherine had more to say with these educated and sophisticated young people than she ever did with the flashy Thorpes.
She seemed happier and more relaxed in company of Henry and Eleanor than she ever does with the Thorpes and found much of Henry's banter amusing.

Henry didn't begin his lecture on the picturesque until Catherine began to lament her want of knowledge and declred she wished she could draw.

I think Elenor is used to Henry's jesting and I thought she handled him pretty well. For e.g Henry teases about 'nice'. Eleanor spiritedly replies,
'While', in fact', cried his sister, 'it only ought to be applied to you, without any recommendation at all. You ar more nice than wise. Come Miss Morland, let us leve him to meditte over our faults in the utmost propriety of diction, while we praise Udolpho in whatever terms we like best. It is a most interesting work. You are fond of that kind of reading ? '