Great episode. I actually think these talky episodes, in which Picard prevails with a rousing speech on a moral or intellectual point, are usually TNG's most effective.
Stewart can do these in his sleep, and it's great to give him something meaty as opposed to the more sci-fi/action oriented episodes. He really looks like he's relishing them, which is wonderful to see. Episodes like The Drumhead, First Duty, Devil's Due, Who Watches the Watchers and The Offspring are some of my all-time Trek favourites.