The Federation thought the land of pretty, blonde people were primitive and ignorant. Boy were they wrong!
What was that episode with the other pretty blonde people that tried to execute Wesley?

I liked the way the Baku woman calmly schooled Picard on what they knew....
Remember though, the Federation wasn't primarily interested in the planet, they wanted the ring of particles around it.With the long war with the Cardassians, it was never said that the colonists from the Federation got there first. All we know is the Federation and the Cardassians were fighting over possession of the same area of space.
That's true, especially the case with the Indians. They were specifically warned that the planets they wanted to settle on were in dispute with the Cardassians.
But I was thinking more along the lines of other episodes where the Fed would say 'we found it first so it's ours' in a dispute of a planet.
The impression I got from the movie was only Picard and his crew thought the Baku were primatives, and that misconception only lasted a few hours.The Council knew that the Baku were immigrates, because the Admiral knew. Obviously the Baku and the Sona knew.
That only makes the Fed look worse if they can't explain how they claimed a planet the Baku settled on, before the Federation even existed as a nation. They knew the Baku immigrated there. They knew when they immigrated--before the Federation was even founded.
Otherwise, it looks like they deliberately claimed an inhabited planet they thought was populated with people who wouldn't know or care.