Picard's "smug" factor is set on thirteen on a scale of one to ten. We have him using women and children as human shields. The pretty white people are the downtrodden and those who aren't so pretty are "evil" including Dougherty.
From my perspective, Insurrection is the most shallow entry of the movie series and makes "message" episodes like "Let That Be Your Last Battlefield" look subtle in comparison. YMMV.
You present a good argument from that POV. But I don't have that POV myself.