Yep, that's the one. I think Ron Moore basically said as much in the commentary. They blew the movie premise there.
The slight problem would have been the fact that Spock, Bones and Scotty couldn't have died, but you could easily solve that by keeping the basic premise of the early part of Generations - Kirk attends the launch of the Enterprise-B, there's an emergency, the captain is killed and Jim steps up. He sacrifices himself and the Enterprise to save the Klingons and prevent a war, with the rest playing out like YE.
Obviously you'd make Worf the main villain in the alternate reality (why wasn't Dorn the voice of the Klingon captain in YE anyway?), but I don't know about including Yar. I'm not sure Denise had the acting chops for the big screen.
Replace the Yar role with a new character, and have the love interest with Kirk instead of Castillo. You could still have Koenig in the film, make Chekov the Enterprise-B's first officer if you like.