How exactly is Picard being out of character an argument for ID over FC?
ID turns Spock into Kirk (KHAAAAAAN!), turns Kirk into a Captain who makes bizarre decisions for no reason (Hiding on the ocean against Scotty's recommendations when the ship is just as well hidden in space) and turns Khan into a sentimental daddy figure who is easily controlled simply by threatening his followers. Even after he somehow got his hands on those same followers, and, instead of waking them up and taking Section 31's technology to relaunch his plans for world domination, instead decides to just hide them in torpedoes and keep doing Marcus' bidding.
Both films have significant issues. I wouldn't include either one as among the best Trek films, even though they are both reasonably enjoyable. Ultimately, the quality of the writing for both is, to me, equally dubious. ID of course has better special effects - that's a given, being released 17 years later. But the general execution of both films is more or less on the same level. I would give the very slight edge to FC, simply because the extended fakeout of demoting Kirk at the beginning of ID and then reinstating him without any real consequences rather detracts, for me, from the overall coherence of the story.