Anyway, the bit where Starfleet is kind of right is in calling out Jean-Luc's arrogance. You can't go on interstellar television and denounce Starfleet on Friday, and then walk into the C-in-C's office demanding your commission be re-activated and you be given command of a starship on Monday. And Jean-Luc "offering" to accept a demotion to captain is just icing on the cake of arrogance.
My view is I'm not sure it was really even arrogance when Picard truly is important and his mission was real. He's ambassador to an alien that can blink humans out of existence... they should line up a ship if he asks. They're supposed to look past TV appearances be better than that and keep an open mind and get to the heart of the matter.