I liked this episode, but the scenes with Picard and Q together on the Enterprise are some of the best scenes in Season 1. Both of them quoting Shakespeare back and forth was really a highlight, especially with Picard culminating it by quoting Hamlet.
You do realize that Picard is quoting Hamlet out of context, right? The line comparing man to angels and gods is meant to be taken as sarcasm, but Picard actually believes that this is what humanity will rise to one day. Yet when it kind of does when Riker gets the godlike powers, it's the worst thing that could ever happen. I do believe Picard is lacking in consistent views.
The only Shakespeare line said in this episode that tells us everything that needs to be said is the line "A tale told by an idiot". That's exactly what this episode is.
Davejames addressed this better than I could, but why can't I like two great actors going at it quoting Shakespeare. Told out of context or not, it was still an awesome scene.