You are not taking crazy pills, its premise does suffer when watched with a “critical eye” (i.e. thinking about it even a little).
The reason it’s remembered so fondly (imho) is two fold. It is one of the first “thought provoking” episodes. And the first couple of seasons were… not the best to put it mildly.
edit: admittedly, I do enjoy it, but I really have to turn my brain off to do so.
lol, no kidding. Even watching it as a kid my first thought was, “the fate of Data’s rights can be determined in an impromptu court session with bridge crew acting as lawyers!? Shouldn’t they have… real courts for this?”. At the time I didn’t consider the limitations of the show of course, and I do think the willingness to tackle high concepts was what made the show so special. But damn did the limitations show in this one.