More thoughts I had over this latest stage of the debate (still very interesting, everyone, thanks!

):
Everyone fails sometimes, because everyone (or everyone worth investing in as interesting) has limits. No limits...no interest. Ask the Q. The omnipotent life, the unbreakable man, the invincible spirit...it's ultimately hollow and, dare I say it, dull.

. Everyone has moments where they can't face up to the situation, can't accept the scenario, everyone has moments where they despair. Picard saw his entire universe crashing down in flames around him- maybe it's just because my idea of a hero is a
person not an ideal, but, gods, I could understand. If my entire world, everything I valued, was being torn callously to pieces and I was convinced it was hopeless...well.
If we're asking ourselves, did Picard fail this time, as a hero, as a Starfleet captain, as an officer, even as a person? Yes. I think we all pretty much agree. He failed. But I don't hold it against him or consider it harmful to his character. He isn't a cartoon character- he's a man. Men break. And Picard hasn't let us down before, which is, I think, very relevant. Time and time again, he's soldiered on past terrible pain and he's come through as the hero. He's a rock. But there will come a breaking point. Joined Trill Dax, Caeliar-human "hybrid" Hernandez, even xenophile Riker...they aren't rocks in quite the same way. They're sand. And sand can survive in this situation where the rock is finally shattered by the blow (if that makes
any sense)?
Picard understands the sheer power of the Borg in a way only one other person featured in the trilogy can. The others are idealistic, believing they'll find a way, they won't let this be the end- this is a
good thing, of course, and it's to Picard's detriment that he can't embrace the same worldview. But
how can he? There's a thin line between idealism and self-delusion at times. Due to his connection with the Borg, Picard's being confronted with the knowledge that the Federation
can't, reckoning in any conventional way, win. It's fact; he knows it. Ironically, his knowledge proves a weakness, and it's interesting to consider- to what extent is it in fact a self-fulfilling prophecy? Some of you are saying, the Borg already beat Picard- they broke him. Quite possibly, or did his own accurate knowledge of the true plight beat him? The others, free from the sheer weight of the hopelessness of their situation, can cast around for ideas, new angles- which is what they
should be doing of course and what
does eventually win (Picard's resistance to Dax's plan notwithstanding).
Remember Seven of Nine's "evacuate" plan? She was the same: it's hopeless. She and Picard "knew"- and so believed on some powerful level- it was all over, because they knew that realistically any hope of victory was foolishness. And in Picard's case, the weight of that knowledge crushed him and, yes, made him pretty much no real use whatsoever. And yet idealism and "we'll find a way!" still won the day, as Dax, Riker, Hernandez, etc, proved. And as we Trek fans would expect and applaud.
Thrawn mentions this trilogy pushed Trek's morality to its limits- I would say it did so by suggesting that the idealism Trek depends upon and which we all support has limits...yet it also
overcame those limits and affirmed that, yes, those values still deliver. Idealism can cross over into..dare we even say it?- a form of ignorant delusion at times, at its extremes. Yet if it
was in any way ignorant delusion to think the Borg could be stopped...well, they were. So there. And if Picard and Seven were the only ones not ignorant and deluded...they were still wrong. So there. Wow. That's really shocking territory we're moving into here. And (to me)a fascinating affirmation of Trek's core message of idealism that also hints at self-recognition of possible limits. That strikes me as intelligent story-telling. Our values and beliefs were- well, in my case- supported and reaffirmed by this trilogy (once again, idealism and a non-defeatist attitude came through and got results), but, like the Federation, it almost looked like they might fall. I see the trilogy as presenting Trek's core beliefs standing on the edge- the ultimate trial, mirroring the Federation's ultimate trial. In the end, those ideals, like the Federation, stared the abyss in the face...and survived. Not fully intact- it took a hit, a daring move- but it
passed the test, and has the opportunity to come back stronger for it. That's why I love the trilogy so much. To me, it was Trek. The ultimate Trek.
As for fall-out on Picard's character: If Picard hadn't despaired and, yes, become pretty much useless, well....given his history with the Borg, his hopes for his family, etc- as other posters have outlined- well, maybe that would be heroism as some define it but it sure sounds boring to me. As it is, I've learnt something new about this character, which satisfies me- I've seen the limits of his tolerance. He can handle a lot, as we all know. But here we saw that we he
can't face, the one thing that could destroy this great man (and it's hardly small is it? It was nothing short of apocalypse brought about by his worst foe- hardly a trivial failing).
If anything, it's good that "Destiny" undermined the "heroes invincible!" idea. No-one's invincible. Picard accepted that the Borg were invincible- he was wrong. But Picard himself and his Federation are no different.
No-one is invincible, "good" or "bad". Was that not in part the point of the story- Hernandez even points out to the Caeliar that they need to change, because they're not invincible either ("you never thought 98% of your race would just be gone! How many more Erigols can you take before it's over?"). She points out to the gods, "you are not unbreakable. None of us are".
Which is why the Caeliar had to accept Hernandez's advice and make the step of reaching out with compassion to help the Borg. Strength through compassion, diversity, flexibility, idealism- not standing alone, because everyone will face a challenge they alone just can't beat. Picard's biggest weakness was always that he stood alone when he shouldn't have ("I should have done this years ago" in All Good Things).