Admiral Clancy (had to google it) point blank says so.
PICARD: The Federation does not get to decide if a species lives or dies.
CLANCY: Yes, we do. We absolutely do.
There is big difference between your first statement about Starfleet right to correct all the wrongs in the universe, versus what the Admiral stated. And yes her statement is factual.
The Federation has never been required to save or let die a species. It's always been their choice either to act (if it doesn't violate some other regulation) or not to act. That's literally one of the jobs of the leadership of the Federation.
Simply put Picard is being an idealist in his argument. The Admiral is being a realist in her's.
Trek has many examples where for many various reasons The Federation or by extension Starfleet chooses not to act, and other times they choose to act. But it the ruling council's choice, one way or another. And that doesn't even touch upon issues where the Prime Directive is involved.
In Picard's view helping the Romulans was worth the chance of losing members worlds or weakening the security apparatus of the Federation for threats to take advance of. And the Admiral's reflected the response of the Federation Council. It's very much a larger example of how the Federation had to respond to the Dominion war. Betazed was conquered. Now the Federation could decide to focus their full might in recapturing Betazed and put at risk other systems, perhaps more fundamental ones, or they could allow the Dominion to hold onto Betazed and focus their forces elsewhere, Its a near perfect example showing how the Federation doesn't have the means to do everything it might wish.
And as mentioned above the androids were not meant to have sentience. SO it's completely different from Data or even the doctor's quest for rights.
As for season 2, you really don't miss much. They're a few nuggets, that might. tie into this season and its characters.
Laris and Picard are in a relationship. And we learned why Picard would never open himself up fully for a relationship (Inner lights massive time frame might allow the same growth he experienced). And it might even help underscore one possible reason why Picard and Crusher didn't work out.
Raffi has beat her drug issues, during the time leading up and during season 2. Of course being proven right and not treated like you're a loon might have provided some help in that.
Raffi and Seven had started a relationship, but they both had their issues about opening up to the other.
Seven found a lot of resentment and prejudice about being a Borg by the Starfleet crew she was on. That might, perhaps, have some small part of why Captain Shaw would prefer Seven to go by her birth name. It also could be his own issue, but it's certainly possible its partial influenced by trying to provide an over all more cohesive crew relations.
But that's about it that I can thank of, based on what we have been shown to date.