I view Picard's death in the finale as the culmination of the main story about a sick, old man trying to do something good in his final days. The rest of the story, while more prominent, is just window dressing.
The plot bears out a sort of unintentional bucket list. He attempts to recapture his youthful energy in Stardust City, says goodbye to old friends, etc. That said, his death was a bit rushed, but the imagery of a dying man choosing to shorten his time to protect the innocent justifies it in my mind.
His resurrection, or copy, does seem to evoke reincarnation. It is clear Picard died, yet he wakes up into a new life where he can improve himself further.