If you haven't listened to the Braga and Moore Commentary for GEN, you should. They go in to detail about what went wrong with the film. It's actually funny. It's one long apology almost.
The long and short of it is, that Paramount mandated things they wanted to see in the film and the creative team (Braga, Moore, Berman and Jeri Taylor) went out of their way to subvert expectations of the audience. Hence you get Picard and Kirk making eggs and riding horses, as opposed to them fighting the bad guys on their respective starships.
The lack of action in the film is attributed to Jeri Taylor who suggested that they do something off beat and the audience would find that "charming". I suspect she expected the audience to appreciate the novelty of the creative/writing team of purposefully not doing what one would expect in a Sci-Fi film like this. Which is all the more HILARIOUS when you watch the seasons of VOY that Jeri Taylor was executive producer of and the heavy empathize on go get'em action she approved of in that show. But for a feature film? No, we need to have the crew fiddle about on a holodeck of a 17th century ship and wait nearly and hour for a brief action scene.
This movie seems like such a waste of potential, it's infuriating.
You're right it was and the reason was because it was rushed. TNG went off the air and they moved as quickly as possible to get into films. Plus they wanted to get Kirk in someway.
It was a complex process to make the transition from TV to film PLUS try and fit Kirk in some meaningful and epic way. It was something that needed to be planned carefully and slowly if necessary.
But they couldn't wait. It was like if they were all Soran and believed they were running out of time. So they threw together what they thought was good enough and sent it out.
They really would have done well to take a lesson from James Cameron in this area. Cameron, especially with Titanic, wasn't concerned about schedules or any of that, he was concerned with making the best and most accurate film possible....timetables be damned.
Of course Paramount has never been exactly patient with getting the next ST film out. It's a minor miracle TWOK turned out as great as it did considering how little time and money Paramount gave them after TMP. It could have, and probably should have, been a disaster and ended the film franchise.
And after TFF the franchise deserved to die. Fortunately, TUC was a great deal better.