Seeing as the Genesis cavern seemed pretty stable, I think the real problem with the torpedo was that it was set off in an unstable location. An actual planet or moon would probably have yielded a successful experiment, a solid body to give stability to the protomatter. But unstable matter + nebula gas = big mess.
Khan setting it off in the Mutara Nebula guaranteed it was going to fail. Add to that Kruge's murder spree, and it's easy to see why Starfleet buried it. It was too much of a political liability, and the fact that it was misused in the first place probably put the fear of God into everybody.
Didn't Troi of all people suggest the Nanite thing when fighting the Borg?
Kivas Fajo runs the place.All actual research materials regarding Project Genesis was wiped from every Federation database, transferred to old-fashioned hardcopy, and locked away in a big wooden box in a secret warehouse that allegedly also houses other very dangerous items, including the Ark of the Covenant.
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