Such as removing an indigenous pre-warp population from their own home land to used their natural resource for their own advantage
So they put so many proviso and nuance on this issue that it turns out the “ villains” were the good guys
So it establish that the Baku weren’t native to the planet
It also turns out that the Baku planet was inside Federation space (so are the Baku people trespassing on Federatipn property?. Therefore federation have the right to evict them). Now even ignoring this federation space issue and let say the Baku are the natural owner of the planet
So it turns out that the Baku and the Sonar are the same race and people
Therefore Baku/Sonar have equal claim to the planet and this is a civil war.
Now the federation is absolutely violating the prime directive of picking a side in a civil war. However considering the desperation of being in the middle of a Dominican war that is threatening the existence of the Federation it is understandable they are breaking it (I personally do not consider intereference to be inherently right/wrong and treat things on a case by case manner and I consider them to be correct to intervene here)
Federation are allying with the side that is willing to share the resource with the galaxy while Picard is allying with the side that is going to hoard it
How is Picard on the correct side here?
Baku are the villain for exiling people for just using technology and then want to hoard their resources for themselves instead of sharing it. While the Sonar who have equal claim to the planet wants to share it