yI loved the first half of Indistinguishable From Magic and liked the second half. The characterization of Geordi was great and it was great to see him take center stage in a novel.
I was kind of annoyed at all the familiar characters in the novel, but I understood when David said it was an editorial decision to have him include familiar characters. What irks me about that is that there are some very popular novels that had little to no familiar characters. Fire Ship had only a few pages of the Voyager crew and there were long stretches of the Destiny children that focused on Erika Hernandez, who was only in three episodes of Enterprise, surrounded by barely known characters. It's not Trek fans are so picky that they can't read ST books unless there is a first or second tier character on every page.
As far as canon/continuity/whatever, I'm okay with it. Federation is considered one of the best books in the entire line and that book is seriously apocryphal.