Although I've always found it pretty weird to refer to people born a century later as "the next generation." There are probably three or four intervening generations, really. The next generation after Kirk and Spock would've been contemporaries of Saavik or Valeris. So it was never a very good title for the show. (Or a very original one. We'd already had Roots: The Next Generation 8 years earlier and a Kung Fu: The Next Generation sequel pilot just months earlier, and we'd have Bonanza: TNG one year later, Degrassi: TNG in 2001, and plenty others.)
But it's occurred to me that the original idea behind the Picard character was that he was the revered Starfleet legend who was training his successor Riker for a captaincy and was basically a teacher figure for the younger crew. So the title could've applied to Picard shepherding the next generation of officers after his own.
Wow, I did not remember all those other Next Gen, but it does seem to suggest an overuse of title format. Kind of like today's "Age of..." I've read articles about how TWoK and TSFS show a possible version of what a next generation would have been like, which makes David Marcus's fate all the more tragic. I love the idea of Saavak and David as a duo of adventurers, and like to imagine it.
Picard as a legendary starfleet figure makes me think of how TNG drew from Phase II. So Picard's role would echo Kirk's, the way Kirk was going to be present to inaugurate Phase II, and then gradually Kirk would be phased out (with plenty of opportunity for guest appearances throughout the hypothetical run). Interesting, I hadn't realized that was a concept for Picard's character.