This episode was probably peak Dukat. Unfortunately, I don’t think they stuck the landing for his character arc. His descent into insane mustache twirling villainy in the last season was not very interesting. By the finale, the Dukat part was by far the weakest of the simultaneous plot threads.
The people in charge of TNG by that point were creatively bankrupt. It would have been a fiasco.
Also, the idea just doesn’t fit Star Trek. It isn’t a comic book franchise, where fan-pleasing callbacks and crossovers are baked into the formula. In Star Trek media, callbacks and crossovers have tended to be some of the worst stories.