I too would've loved to see Nemesis as the extended version.
I would like to amend my first point by saying it as:
Big screen director + Big screen writer = Big screen
vision.
See...all the directors and writers for the first three movies wrote with still quite a bit of TV aspect in mind....as in 4:3 aspect. Their vision really didn't translate so well, at least to me, on the big screen. They looked much better by the time they hit home video, at a time when 4:3 was still the rule for home video, not the exception.
With Stuart Baird's direction (even though many would say he's a much better editor than a director), and John Logan's (Gladiator) pen, they thought in far more epic and wide screen terms. The action fills the 2.35:1 aspect ratio much more capably than Gen, FC, and Ins. They take full advantage of the widescreen aspect.
At least, if anything, in terms of the lengthy (and much more satisfying) space battle and other visuals in Nemesis, the FX budget really paid off in spectacle, if not profitability. It was great seeing more space battle footage to match the internal dialogue shots.
I would've been very disappointed with that battle if it had been 45 minutes of damage report/evasive action/return fire/camera shake the crew ten ways to hell interior dialogue shots, with only two or three average looking exterior FX shots.
That was how "episodes" played out. All dialogue with only a couple of FX shots. Understandable....budget constraints. (Although the more self-righteous Trekkie might excuse it/be self-appointedly apologistic by saying something inane like "Well, we prefer to use our imaginations!".

). Unfortunately, that seemed to be about the way that the first three TNG movies played out as well.
Even First Contact's "major space battle" looked, felt, and played out like a space battle on a tv episode rather than a big screen spectacle. I'd even heard that that battle was supposed to be something on the order of 20 minutes. Upon release, it was over in two. But I was glad it was so short, because 19 and a half minutes of interior dialogue/shake the set with the camera shots with only thirty seconds of exterior, television episode quality FX shots would have had me walking right out of the theater, with no desire to see another TNG era film again.
Also, in terms of story, FC blew its wad right in the first 10-15 minutes.
With Insurrection, the movie trailers played up the action with footage from First Contact's arbitrarily short space battle. The result on release was extremely disappointing.
Nemesis, at least, delivered on it's "more bang for the buck" when it came to the film's climactic and epic space battle.
My big problem with the writing was that it was essentially written by a "fanboy". John Logan is a Trek fan, and he wrote it in a very fanboyish fashion. I had no problems with the Argo scenes....I thought they were refreshing. However, Riker and Troi's wedding looked and felt more like a 'shipper's squeeing wet dream, rather than an emotionally uplifting moment. And Data's death (moreso the writing of Brent Spiner rather than Logan) did feel rather arbitrary and lacked the emotional impact of Spock's death in TWOK. Even Kirk's death in Generations felt more self-indulgent, rather than emotional. My problems lay also within technical areas. (The Enterprise somehow mysteriously gained two or three more decks.).
Personal opinions of a self-avowed non-fan only. Your inner-Trekkie may vary.