To the OP's original question, I would say no. I don't think it was a bad decision. It made a lot of sense to me. At the time of Generations, Star Trek and TNG were riding high and fans wanted more. Where I think mistakes were made were in the execution. I wish there had been something more of an arc for the films, instead of the more stand alone, haphazard way each film seemed to be done. I understand why it was episodic, but I wish there had been some strains established in Generations that would bear fruit by the time of Nemesis.
I also didn't like trying to change Picard and Data into Kirk and Spock. There was too much aping of the TOS films. With TOS, thankfully they had no one to emulate. But TNG got caught in the losing proposition to recreate the magic of TWOK.
So I thought the idea to go with TNG movies was a good one. I don't think the execution was as good as it could be. With all that being said, the only movie I didn't like after leaving the theater was Nemesis. And my dislike lessened once I bought it on DVD and watched it again.