I don't think this episode is all it could have been - like the DS9 two-parter "The Maquis", it's partly hamstrung by the fact that the Federation insurgents are not particularly charismatic.
That said, you have Michelle Forbes putting in what is easily her best turn as now-Lieutenant Ro Laren. Much of the gruffness of seasons 5 and 6 is still there, but she lets slip a lot of the character's underlying emotion and richness. Her relationship with Picard, not really tested since season 5's "Ensign Ro", is explored even more richly here as it is tested and then broken.
Ultimately, the final third of the episode is where the best material lies - when Michelle Forbes, with support from Patrick Stewart and Jonathan Frakes, does her thing. Not a classic, but a worthy farewell.
(And of course, I have to mention the great space battle in the beginning - the best in TNG's history.)