The very end was a bit confusing, because it seemed like they were implying that Rugal was halucinaiting his girlfriend being on Cardassia (they never say who the woman is he meets near the destroyed statue, and they had tried very hard to make clear that she was dead). I'm going to assume that was just the author getting too cute with the scene, and that I'm not supposed to think that Rugal had snapped. Still, they could have included her name in the exchange, and maybe not have hand waved her survival away. It didn't ruin the ending, but it was a bit annoying and rushed, since she just shows up and he doesn't act surprised at all.
I think Penelya is real - the ending is bittersweet, more than 'cute'. I don't think there is any sense that Rugal has 'snapped' - although I had never thought of that before, but he's too level-headed, too down-to-earth, unlike his friends who did go mad. I guess it is in the eye of the beholder, but I think Una mentioned here before about Rugal & Pen (but I may be wrong).
Oh you should definitely read her other books -
The Lotus Flower,
Brinkmanship and
The Crimson Shadow all deal with Cardassia, and she has such a talent for not simply Garak but also other members of that species. Her Cardassia, her rather literary (or perhaps 'indie arthouse') take on the Trek world makes me happy and sad, as it should. I just keep wanting to learn and experience more, no matter how horrifyingly real the consequences feel, as with the understandable but horrific reprisal genocides mentioned in
TNS. Her landscapes too! There is this storm in
The Crimson Shadow that is one of the most beautiful bits in Trek prose - this red dust that comes in and cakes the shanty city that is the capitol of Cardassia in crimson.
Her work is an ideal, and superior, successor to Andrew J. Robinson's own lovely
A Stitch in Time. Have you read it?