Well the only issue is what else could they do? I herd talk of beaming the borg into space but was that a realistic plan. The Borg controlled engineering I thought they had cut power to stuff like that which was why they had to do the whole UAV walk to disable the deflector dish.
Picard was clearly losing it for a while there but they really had little in other options the Borg were crushing them at every turn. In some ways you need Picard to go all Patton on the crew to keep them from an all out route. I would also note that it did not take much to calm him down. If anything someone should have stepped up and talked with Picard. Its scary to think that Riker and Troy actually did something on the ship because it seems they would have been tailor fit for that moment but were stuck on the surface.