Before, Vic was unnecessary fluff added to a show that already contained a lot of fluff. This episode finally proves Vic's worth as a member of the ensemble, not just because of his role aiding Nog through his trauma, but also because this is the first time Vic actually gets to act like a real person.
I have to say the DS9 writers were really, really good with this type of thing: taking a new element and adding it to the overall tapestry of the show in ways that you don't necessarily expect.
I'll never be a huge fan of Vic, but I can't just write him off either, the way I might like to, because of episodes like this. That's impressive stuff, and good writing.
It's especially obvious, I think, in the case of Vic, who is such a blatantly self-indulgent and somewhat silly addition to the show.