This episode is a clinic on how to be a villain. Marc Alaimo portrayal of Gul Dukat throughout the series has been brilliant. The characters' obsession with Sisko, Kira's, & the entire universe's view of him and the Cardassian's occupation of Bajour is truly remarkable to watch.
This all comes full circle is this episode when all is finally revealed to Sisko and to Dukat himself. Dukats acceptance of what he truly is and what he plans to do sets up the final episodes.
Marc will never get the credit he deserves if portraying Dukat and I doubt Dukat would end up on any TV villain list, which is a damn shame.