I liked the scene. I think it gave a nice connection between the two series. Avery Brooks and Patrick Stewart are such fine actors, they did it so well.
The hostility was perfectly understandable, but Picard's diplomatic reaction was also so typical of his character.
In reading these posts, I think it's a shame that there was never any reapproachment between the pair later in the serie after Sisko had dealt with his pain. What a show that could have been.