I never really saw Garak as coming onto Bashir, which is odd because I'm gay and I always see homosexual subtext when there was never intended to be any.
But my perception of him was impaired again because I saw season one after I'd seen 2-4. Or maybe more, I have trouble remembering a decade ago. I can barely remember yesterday.
Whether he is or not, he's Garak, and he's pretty amazing. I agree that this episode isn't the best showcase for him, but it was a pretty decent follow-up to Emissary.