The 4-footer was used fairly well (and sparingly) throughout season 3, IMO. Perhaps its best usage was in Deja Q. But later on with season 4 onward, with all those close-ups and beauty shots, the weakness of its shapes and textures stood out.
There's one aspect of this episode which doesn't seem to come up much - delayed messages from Starfleet. In this one, Picard receives two communiques from the Admiral, which were delayed by several hours. Does that happen anywhere else in the show?