I am not an electronics person, so here I'm a total noob. My grasp is that Q3 simply combines the two functions of an older diode detector with additional amplification. A diode demodulator is really simple. Hey, the original diode detector was the "cat's whisker and crystal" in a crystal radio. It was simply a wire touching a quartz crystal surface and making a poor connection. It passes current only in the forward direction, so only half of the full signal envelope gets through it, and we end up with a voltage that is the original audio signal amplitude-modulated on the positive half of the waveform only. It ranges, then, from zero (or more precisely, the diode's turn-on voltage) to some upper max, say 4 v. The diode plus its associated resistors and capacitors establish an RC network that functions as a low-pass filter that passes only frequencies below the filter roll-off point. But this filter does NOT need a sharp roll-off curve because of the frequency range involved. Even if you we are using the full audible spectrum to to 20 KHz in the original signal, that is modulating in an AM radio an IF carrier of 455 KHz, which is 22x the highest audio frequency to be passed. So even a sloppy filter design is going to work here. As it happens, for commercial AM radio, the audio bandwidth is less - max 5 KHz transmitted by regulation - for the sake of limiting bandwidth of the modulated carrier and making space available for more carrier frequencies in the AM band.