I've been watching through ds9 for the first time and the show has always been good, even the first season I thought started fairly strong. And season 6 (as I've said in another post) has started really strong, with an actual deviation from the show's status quo that lasts longer than one episode.
But holy shit, this might be one of my favorite episodes. Not just of ds9, or star trek in general, but maybe of any show I've seen. And as far as I'm aware people barely talk about it.
The whole episode is essentially Dukat's facade of composure slowly breaking down. He's always been an interesting villain, and at times his insistence that he's doing his best can almost convince you that he might not entirely be the bad guy; that maybe he is, in some way, trying to do good.
And a lesser show might try to redeem him. But not ds9. Millions died under his command, people were sent to the deaths, and as long as he tries defend his actions in any way there's no room for redemption.
This episode finally breaks down all of his fake pretenses of helping Bajor, or trying his best to "rule with a softer hand." Finally his deception is broken down and reveals what he has always been. And it's done in the best way possible.
The scene where he finally breaks down is fantastic. No music, just Marc Alaimo acting his ass off. The panning back and forth between him talking to sisko and talking to the various voices in his head...
"And that is why you're not an evil man?"
Season 6 of DS9 in general is probably just peak star trek, not just in its quality and originality, but the way it is built on the previous 5 seasons and even TNG and trek in general. I'd bet many "candidates for top X best episodes" of DS9 or TNG era trek in general would be in this season alone (Waltz included).