Interesting. I just checked out the script, and apparently the Stargazer DID originally fire a barrage of weapons at the Enterprise after being seized by the tractor beam.
Shame they took that part out.
No budget for the special effect?
According to the documentary, they were running above budget for most of it's Season 1 episodes, so this isn't surprising.
I too just watched "The Battle" tonight and while it's a good episode, I agree with some of the other criticisms, namely, how no one has developed a defense for the Picard Maneuver. Still, I have to say (After watching Last Outpost a few nights ago) that the Farengi were used a lot better here. They may have failed as villains, but this was probably the best use of them (Under their original concept) that TNG ever did.