Bad in what way? They did get the peace - the Romulans supposedly kept to their side of the bargain. To achieve that, all Starfleet needed to do was stop spending money on a technology they didn't need now that their enemies were eating from their hand anyway. Win-win for the Federation.
Which makes one wonder why the Romulans ever agreed to such a devastatingly bad treaty for their part...
er, there are more adversaries out there for the UFP than just the Romulans. Don't you think a cloaking device would be tactically useful against them?