If my memory serve right, there is a law in Federation / Starfleet that banned Cloaking device. Well, I don't object if the reason is understandable. But what I can't stand is that they banned it just because of idealistic decision (what a stupid approach from the writers)
I think it is more logical or acceptable if the cloaking technology is actually bad for human body for a long run, so they bans the technology to protect the user, rather than what we have in Star Trek TNG now.
It's actually more likely that the Federation got its ass kicked at the Battle of Algernon and the Romulans were able to impose a new treaty banning cloaking technology in exchange for peace. If you consider that the use of cloaking devices might have been what triggered the engagement in the first place (say, superior Starfleet tech being used to spy on the Romulans and the Romulans finding out about it), then banning them would have been a logical concession for a peace treaty. It's also not known what Starfleet got in return for that concession, but I would guess it had something to do with Romulan WMDs, which may in turn be the reason for Starfleet cloaks in the first place