Well from the responses, it looks to be almost 50/50 as to whether or not Insurrection killed the TNG movie franchise. I have no doubt in my mind that had Insurrection been well received and made more money, Nemesis might not have been "A Generation's Final Journey." I still have a feeling of an incompleteness to the TNG franchise. Let me pose this question...after First Contact, why would they change movie styles to go to a light and fun movie? I was much of an internet guy back then, but was there a huge backlash or desire from the fans to go back to a TNG-TV style of movie??
To answer your question since everyone else is ignoring it. Michael Piller wanted a softer story after the go get'em action film that was First Contact according to Rick Berman. Michael Piller who had written iconic episodes such as TNG The Enemy, Yesterday's Enterprise, Best of Both Worlds part 1 and 2, Unification part 1 and 2, Time Arrow and helped launch DS9 and VOY. Originally Piller wanted to do a Heart of Darkness type movie which would've had Picard lose everything, his ship, crew, rank. Picard was also going to kill Data. Data was going to go haywire like he did in INS protecting the Bak'u only in the original draft the race that became "Bak'u" at the writing level were all going to be children. Picard would discover Data's cause for fighting against the Federation after he shot him and discover the "Bak'u" children.
It was really dark story, Berman and the Studio both had the same reaction that this isn't what a Star Trek movie should be. So Piller changed it and made it a lighter upbeat movie. Designed to be used as a floatation device in the event of a water landing jokes and all.