I think your list is very similar to how I would rank mine but swapping 2 with 4.
Episode 3 - From the break in through the next day is my favorite section in the entire game. If I could have ended here I would because when we jumped into the other timeline it was clear something wasn't going to be right, then when Chloe was shown I knew this game was going to difficult emotionally.
Episode 2 - The whole section with Kate on the roof was amazingly done, the fact that you can't just go back and change your choice as you had been able to do so many times before just nailed it down.
Episode 4 - After the ending to episode 3 and seeing what happened to Chloe in this timeline was heart breaking, the worst part was that it seemed like Chloe and Max had been keeping in touch in this timeline and if it wasn't for the accident Max could have been very happy in that timeline and when Chloe asks for Max to let her die, nope not going to happen EVER. Then coming back finally figuring everything out (GREAT) the plan comes together to reveal what Nathan has been doing, only for it to 180 and start the complete mental breakdown for Max.
Episode 1 - I wish I could rate them all No.1 but I have to put this at No.4. I loved the introduction to this game, getting to meet everyone for the first time, saving (and being rescued by) Chloe, by the end of this episode I knew it was going to be a great game.
Episode 5 - The whole Nightmare section was amazing, having to go through everything again and seeing as Max faces her own insecurities as it builds up to her finally facing her choices was brilliantly done, unfortunately it was the ending that ruined it for me.