Hot take. But put it in the context of the year it was aired, not today. Star Trek (and sci fi in general) was suffering from being perceived as "blue babes and laser guns".
This episode was thoughtful if taken as standalone. And TNG really was about taking the episodes more or less independently. The season long story arcs and such didn't exist. People weren't binge watching. So the world building was less important than the specific hypothetical moral quandary of the week. Like, they are almost like Asimov short stories with a shared cast.
It wasn't until a few years later that serialized TV even really became a thing -- Twin Peaks probably was the first here, but Babylon 5 would have a good claim (and DS9, Buffy, and others were coming together then too). So the style of storytelling on TNG S2 is different.
Divorce the story from Star Trek and the setting and evaluate it as a sci fi ethical quandary. And in that framework, it is a remarkable episode.
Also, Brent Spiner played it well :)