And...how do we really know that Yar is indeed dead? Considering Sela's manipulations and deceit over the years, could Yar's "death" have been a way to explain to a young Sela why her mother was no longer in her life, while her father transferred Yar over to the loving arms of the Tal Shiar for mind-sifting in return for some political advantage?
Inquiring minds wanna know...
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I believe Picard had some line to the effect of, "I don't believe everything Sela is telling me"...which I took to mean they wanted to leave their options open.