The Borg will always be my favourite Star Trek "villain". They're ruthless, logical and rational (in their minimalist way) to the extreme, and pretty much scary as fuck (at least until Voyager soften them up, by humanising them a bit). I would always wet myself whenever there'd be another episode with the Borg, both out of excitement and fear. Of course, I was only a mere teenager back then. The excitement remains till this day, though. Last season's finale and this season's premiere made for some of the finest episodes TNG had to offer, in my humble opinion as a longtime fan of the show.
A solid conclusion to the 2-parter, and a seamless transition into season 4. By today's standards it's missing all the huge action we would expect, but it manages to effectively present a gripping story. It wraps up a bit quickly and in a slightly lackluster manner, but the journey there is good.
For me, it's Riker that's the star here. Once he's promoted to captain, it suddenly becomes clear what a cushy position he's had as second in command, and what a massive responsibility being in charge really is. Picard's recovery seems a bit quick, so the next episode is quite important.
The Battle of Wolf 359 is unseen, but is going to become a major part of Star Trek lore.