Shades of Grey is a real episode. A really, really horrible episode resulted from a writer's strike shortened season and the creative death of the original writing staff.
It's true clip shows are common in television but you generally expect Star Trek to be held to a higher creative standard than Full House.
And heck, Stargate's clip shows weren't great but at least they managed amusing and/or useful stories around them. Their first clip show was used as a plot connector between the first great episode of the show and the season finale and introduced Senator Kinsey, one of the show's best villains. Then that later one with the guy who could see through O'Neall's eyes was stupid, but at least a little funny.
And I'm not sure what's innovative about "COMMANDER RIKER IS SICK! When he has good memories he dies more and when he has bad memories he bounces back." They didn't even bother with technobabble there, it was just kind of "Wow magic".