Guy Gardener wrote:
In exchange for the fancy life Dukat was giving her, she forgot about the concentration camps and the resistance living in caves fighting to free Bajor.
That was the point of the story.
Kira's mummy was a dirty no good collaborator.
Personally, I thought the point of the story was that Nerys believed as you do, but discovered that Meru did what she did to save her family. Nerys may not have condoned Meru's choices, but it was definitely more "grey area" than she first thought.
EDIT: And what Teacake said.