I also figure that it's the 24th century, so maybe rehabilitation is a lot better.
Initially rehabilitation plays no part. Picard recognizes the bridge of the Enterprise within seconds of regaining consciousness . He doesn't speak to Will Riker as if he were someone he hadn't seen for thirty years. The "life experience" aspect of the alien download obviously begins to disappear immediately. Picard remembers elements of the story line he was exposed to, and is effect by it. But it's not like he personally lived thirty years off the ship and then return after that time.
O'Brien continues to remember the time he spent imprisoned personally, the impression I received from that episode is that it would remain with him as an actual event in his life always.
Picard realizes very quickly that the download wasn't real.
R. Star wrote:
The Inner Light's rapist just turned out to be a nice fellow despite the rape.
Interesting way of putting it. Maybe like the guy who hurts women, but keeps his lawn nicely kept up.