I'm surprised they'd be fine with the Illyrians just hanging out somewhere on the edge of Federation space then. The crime of their existence makes them seem worse than the Klingons, the Romulans, and the Orions combined.It is a crime to border hop and get genetic engineering work done, as seen in DS9.
I feel like I'm nitpicking, but I just wish the story was either more specific to to cover these details or more generic and didn't leave room for my brain to think about this stupid stuff. lol