If the Federation actually signed off on all aspects of Dougherty's plan, then that should have been part of what the film was about. In that case, Picard and crew fighting for the Ba'ku against the Federation itself would have been worthy of being called an insurrection.
But no, since all the Enterprise had to do was pull the fire alarm by contacting the Federation, we were told that Dougherty had kept the full extent of his plan from the Federation Council. They would not and did not openly support it. In the film we got, Dougherty was acting without full authority, and the word insurrection, as a description of Picard's actions, was therefore a misnomer.
Among the film's failings was not exploring how deep the rabbit hole went, with respect to who else in the Federation and on the Council knew what Dougherty was really up to.
Again, where are you getting this from? Where is your onscreen evidence that Dougherty was hiding stuff from them? Now sure, AFTER Picard began thwarting the relocation, Dougherty did stuff without their approval, but what of the initial plan did he hide from them?
Cite evidence from the movie, not non-canon sources.
First of all, if Dougherty had assurances that the Federation Council would openly support his actions, then calling the Federation would not have made any difference. Ergo, the Federation Council couldn't have promised him open support.
This dialog backs that deduction:
RU'AFO: Federation support, Federation procedures, Federation rules. ...Look in the mirror, Admiral. The Federation is old. In the past twenty-four months, they've been challenged by every major power in the Quadrant. The Borg, the Cardassians, the Dominion. They all smell the scent of death on the Federation. That's why you've embraced our offer, because it will give your dear Federation new life. Well, how badly do you want it, Admiral? Because there are hard choices to be made. Now! If the Enterprise gets through with news about their brave Captain's valiant struggle on behalf of the defenceless Ba'ku, your Federation politicians will waver, your Federation opinion polls will open a public debate, your Federation allies will want their say. ...Need I go on?
Moreover, the last declaration there is the key to the whole argument.
"your Federation allies will want their say"
That means that
other Federation members
haven't had their say. Dougherty's plan depended upon a
fait accompli. At best, he had only
some support on the Council.
Beyond the fact that this dialog establishes it as such, assuming that the Federation is still a functioning democracy at this time, it is the only conclusion that makes sense. If the Federation Council is democratic, then it is absurd to suppose that they would give Dougherty any support, knowing full well all the details of his plan, if they were unwilling to give him open support.
Supposing that the Federation Council gave Dougherty full support knowing everything not only contradicts dialog whose purpose is expository, it would imply that the Federation was no longer a democracy, and failing to follow up on that dramatic revelation would have been inexcusable. Not making it clearer regarding exactly how much support Dougherty actually had was pretty weak storytelling, as it was.