This is one of my biggest gripes with TNG - since this seems to never have really affected him again (aside from the "Lessons" moments when he gets asked about the Ressikan flute) it's also massively overlooked by the viewers of the show, which causes somewhat bizarre misconceptions. The man raised two kids, and yet people always claim "Picard hates kids/knows nothing about kids", etc etc. He. Raised. Two. Kids. I mean just because the experience wasn't real for anyone but him doesn't invalidate it, and I for one think "Inner Light" should have affected him profoundly, perhaps even more than the Borg or Gul Madred (the latter of which is yet another trauma of his that's never mentioned again... sigh). I've always found it extremely illogical that he resorts to making up a family in Generations when the real Nexus thing should have been him reuiniting with Eline and Batai and Meribor. They were his family, right there, but nah, the writers had come up with some super bizarre Elizabethan-style XMas scene scenario.
Ah, well. Episodic TNG could only go SO far, I know. Still kinda aggravating how they just "forgot" about most of Jean-Luc's traumatic experiences.