Myself, I've always had several issues with TFD.
I was once a major Wes fan - its no accident that my main fanfic character is Peter Kirk. I did come to realize that Wes's character was overdone, even WW said so. But I just don't know that this downfall was appropriate to the character. I've always felt that it should have come by way of one of his solutions failing utterly, with him later realizing a simpler one would have worked better, with attending guilt and confidence shattered. Or, he could have turned in Locarno and his squad months before, and would, by the time E-D stopped by, be subject to harassment for squealing, finally coming to the sad conclusion that he is wholly unequipped to deal with people his own age. It could also be a harder look at the structure of SA, which turned right around and spawned another group of collective uber-cadets by the time Nog arrived.
The way things played out also bothered me. Wes is credited for finally doing the right thing, and so is Locarno, yet neither did. Wes was at phaser-point to tell the truth. I don't agree with those who say Nova Squadron could have pulled it out technically by sticking to their story. The testimony of the E-D's crew would have carried way too much weight for that to have held up. A professional crew with a legendary rep would have incinerated a group of lock-step cadets in court. If Wes hadn't, Picard would have, and no judge was just going to dismiss him. As for Locarno, Wes seemed to feel he kept to his word by resigning and taking the blame. Hell, the blame was already on him at that point, and the only way he had to salvage his last shred of dignity was by living up to his own big talk.
Also, Wes seemed either too awed or too cowed to speak up to Locarno until he had no choice. Yeah, his Mom's CMO, and a kid has leeway no one else does, but still, this is a kid who talked down Riker and Picard on their Bridge. That takes something besides privilege to do. I suppose that could be wrapped into the notion I mentioned above of his not being ready for his own age group.
Its been so many years since it aired--is it, as far as anyone knows, still the only ST ep in which the regular is verifiably shown to have committed a wrong, without a good or mitigating reason? Lastly, though its from 'The Game' and not TFD, I do still find it odd that the Academy could overwhelm a kid who had actually served in the big leagues. 'Well, Mister Crusher, you can handle the real thing, but can you handle a simulation of it? When your grade, and the grades of all your squad-mates, are on the line, can you get through until the holodeck door opens, and we break for lunch?!! Then maybe review some book reports for me?'