Well, it's not a bad choice but I prefer "Elementary Dear Data" for the whimsy.
One of my favorites as well, it's a great Geordi/Data double-act - of which uses Dr Pulaski in a great way as well and sets up the "Is Data human?" running theme of season 2 strongly enough. (No, he's not human but he's amicable and seems genuine, and doesn't refer to himself as "we" either.) (I'll get to whiny nitpicks later, don't let that detract as I truly adore this story and is in my top 10 with ease.)
Daniel Davis stole the show as Moriarty. The holodeck is explained not unreasonably cleverly as to how people move around in such a small space.
It' s funny how the ship's computer created its own AI, except it's still only responding within the limitations set by Geordi. "To defeat Data." Did Moriarty really grow above and beyond? In some ways, yes. Completely? Maybe. Real sentience would have Moriarty not be slave to the instruction, which is demonstrated at the end - albeit by using logic and rote rather than actual inspiration. The underlying idea is still rather good and very interesting, and kept as metaphor in this episode is a lot more compelling than later spins on it. I need to rewatch this one again and see what I take from it this time around...
Yes, Geordi keeps a piece of paper that's ostensibly generated by the holodeck but others have already postulated that the holodeck works with replicator technology as well as transporters - just another example of technology that has multiple uses. Like how autotune was devised to find oil pockets but ended up making anyone sound like a better singer. Or sort of, it had artistic merit as the occasional song throughout the ages has had some form of reverberation or other effect to add emphasis to the lyrics as an artistic effect, but became so overused and solely for the sake to artificially induce "perfection" to the point everyone using it sounds unintentionally worse as a result... there, that's my nitpick of the episode. There was a scene cut as I recall, and Picard's ending was changed (and for the better, too.)
Worst of all, the sequel to this story pretends Dr Pulaski never existed, as Moriarty never mentions her again and when they departed he lamented on how he could never fill her with his crumpets again. Maybe he was nothing more than a program after all, in a way similar to how Minuet was. (Season 1 did swap stories between this and another that would explain the Bynars' modifications being the cause of the holodeck's newfound abilities to have more interactive characters, I think Memory Alpha had the full scoop - I need to re-read that too...)