I think we're talking about the characters' shock at Whalen being shot in "The Big Goodbye", where Picard also enthuses about the technology as if it's new. If the technology was known a century earlier, "The Big Goodbye" is hilarious because the closest real-world equivalent is Picard being astonished by an Atari 2600 to the point that he has to tell all his friends how incredible it is that you can move the square around on-screen, and Whalen being flabbergasted that a videogame can crash.Self driving Teslas were rushed out and bugs covered up, and at least 1 person has died as a result. I have no problem believing buggy hardware is rushed out and covered up in Trek just like in real life.
I'm not super committed to making the point because the holodeck's inclusion in this episode doesn't bother me, but IMO it is against the spirit of "Farpoint" and "The Big Goodbye" (though Voyager already retconned them to have been around for a few decades, and I didn't have a problem with that either).