It's always rubbed me the wrong way when people regularly say it was banned in the UK (funny enough, people never mention that Ireland also didn't show it).
The BBC in the UK and RTE in Ireland chose not to show it. It's a bit like saying Comedy Central cutting the Muslim prophet Muhammad from that south park episode means he was banned from US TV. It's not the same thing.
To my knowledge, the episode has now been shown in full in the UK plenty of times, but not yet in Ireland.
And it's completely reasonable that both broadcasters chose not to show it. It was effectively condoning ongoing terrorism where innocents were being killed.
Imagine if Enterprise had some pro-al-qaeda remarks immediately after 9/11. There's no way networks would show it lol
Thankfully, the GFA came about and the troubles were ended in the way that Picard advocated in the episode - with diplomacy, compromise, and dialogue, not endless violence.