... but moving them to another planet to get resources they want is perfectly acceptable
"Them" being a adorable little band of six hundred non-indigenous settlers.
And how are the Council members douches for look after the greater Federation population's medical needs? Not providing this medical advance from one of their own planets, as widely as possible, could be seen as a act of incompetence.
It makes me wonder whether or not the Federation Council actually knew everything about the operation and/or would have approved of it if they knew everything that Picard, et. al discovered.
If that were the case, why would the Council order a review, as opposed to a out and out cancellation?
Years before, in Journey's End, Admiral Necheyev also requested a review of a Council decision to move people off of a planet. The Council ultimately confirmed their original decision.