Finally, after six long years, Picard and Crusher finally get the opportunity to discuss openly their complicated and covert relationship. And how nice that their intimacy doesn't end with the two of them tumbling into each other's arms. They build their relationship while remaining true to their characters. Their intimacy continues to build on an adult level, and not with a torrid scene. And their communication with each other remains consistent -- verbal fencing, unspoken communication as important as the words.
Contrasting this is the childish squabbling of the planets inhabitants. This part of the story wasn't thought through very well. Picard indicates at the beginning of the episode how odd it would be to admit part of a world into the Federation -- it's never been done before. That being the case, it's difficult to believe that the Federation would not have attempted communication with the rest of the world's population before getting this far in negotiations.
Also, if the Kes were this paranoid and prone to conspiracy theories, it's difficult to believe that this wouldn't have come to light before negotiations got this far along.
On the other hand, the idea of a planet with such suspicions of each other and squabbling so paranoid that they haven't spoken for 100 years, well, it must be what Congress is like at the moment.