Just to split hairs: Didn't To Seek a Newer World use elements of the STXI deleted scenes? I'm sure the blurb I read at trekmovie.com mentioned Nero's stint at Rura Penthe, which "didn't happen" in the final film.
The new TNG characters were largely created whole cloth, I don't see why a personality and a more in-depth back story couldn't have been given to Madden if the writers were so inclined.
My point is that it's a mistake to assume that Madden exists by default as a part of the canon.
Similarly, several "The Lost Years" saga novels - and the more recent "Ex Machina", of course - have utilized Vice Admiral Lori Ciana, a character given personality, backstory and purpose in the novels, even though she was an unidentified transporter accident victim played by a no-line extra in ST:TMP - to anyone who hasn't read the novelization.
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