This is a fun episode, and I like the humour of it most. The Vash/Picard story works quite well for me because I think the characters/actors play well off each other.
We all put up walls in life, and it's enjoyable to see her chip away at Picard's self-enforced walls.
One thing that's always bothered me with this episode though is that women are tough in Trek, yet they have all the men sword fighting and the women can only smash pots over heads and jump about. I'd have liked to see one of the guys useless, and one of the women maybe pick up a sword.
According to behind the scenes info, Sirtis and McFadden were the only ones who were trained in stage-swordplay, too. I would love to see Crusher with some steel.
I like MEG's point about how Q seems to come across Picard in fairly sexual ways between this and Tapestry. It just adds a whole new dimension to Q's motivations/trickster methods and speaks well of DeLancie's efforts with the character.