This has got to be the most pointless discussion in the history of the internet. What truly saddens me is how much effort everybody has put into it.
Regarding the possible ramifications of Picard's decision. Both the Voyager and the Enterprise NX crews were visited by Starfleet time travellers who came from way beyond the 24th century. The Federation survives. What if? is futile
Also, and its very important to remember this, Picard doesn't just 'make the moral choice' (as if thats something to be ashamed of). Rather, Picard has to abide by Federation law and when Hugh becomes an individual he is entitled to the same legal rights as every other living being.