As for "Far Beyond the Stars," I thought that was a great episode, so I don't see a problem with it.
I'm not saying it wasn't. It was. But it was no longer timely or relevant. It takes place in the 1940s, so 50 years before the airdate of the show. All those things like the rampant and overt racism were gone, the 1965 Civil Rights Act had been in place for decades (not to mention cases like Heart of Atlanta or Little Rock being older than that), the idea of a space station led by a black officer was just the norm, and we had blacks in every position in America by that point. We had black members of Congress, the Supreme Court, the media, CEOs, surgeons, astronauts, movie stars, professors, governors, musicians, writers, and were a mere decade from the first black president. The situation that Benny Russell faced was in the rear view mirror. And for Benjamin Sisko, it was 500 years in the past. It should have been him waking up from the dream in a cold sweat and saying "I can't believe bad stuff happened to my ancestors like that. Oh well, we're long past that nonsense." Just to give the same time span, my English ancestors 500 years ago were killing each other over whether they were Catholic or Protestant.
Star Trek pried itself on being a mirror to reflect society as it was at the time via the prism of sci-fi, but we had Behr writing an episode about stuff that had been fixed when he had been a child just so he could stroke his dyed beard and click his tongue.
A better episode, and one that was still relevant in later 1997 and early 1998, would have been O'Brien and being transported back to The Troubles in Northern Ireland. At least that was still going on at the time of the episode's release. But everyone could say "yeah, racism is stupid. Thankfully it's in the past." It was just Trek playing it safe while still saying how cutting edge societally it was because once upon a time it had been. The Baby Boomers who showed up to run TNG/DS9/VOY/ENT really didn't need to do a lot of the same coded writing their fathers did with TOS and shows like Twilight Zone had because by the 80s and 90s most of the big societal problems outside of homosexuals had been solved. But they needed to pretend they were still pushing that envelope and could only really do that by looking at the past.