DeadpoolXXX
Fraggin' Bastiches
i assume the peace treaty with the borg needed to happen for some reason. q, knowing this, altered the timeline to show the crew that even the federation could easily become the totalitarian "confederation" with a reach and purpose that is arguably far worse than even the borg themselves. so if the federation can change for the worse, surely the borg can change for the better.
so i think at some point picard and crew will be reinserted back into the correct timeline at the point just before picard activated the kamikaze, but this time he will allow the borg ambassador to continue drawing power from the ships to see what their intent truly was...... which, i'm sure, was benign and enlightening. from there, peace will be had between them.
could also be possible that the borg queen, with knowledge of this reality, also knows that the federation was in fact capable of eradicating her entire species, so felt it best to ally herself with them given the possibility of extinction.
the only thing that might throw a wrench in the gears is q himself. picard notes that he seems mentally ill (perhaps dying?) so that makes it even harder to figure out his true motives here.