On page 46 of the 2nd edition DMG, we have story awards for achieving adventure goals. On page 48, we have individual experience awards. 2nd edition certainly emphasized combat, but "entirely" is incorrect. Story awards were a common part of published modules.

Captain Jellico had to assert his authority quickly. The Enterprise crew was potentially going to be on the front line of a war, and that was way outside of their usual comfortable existence. He did not have time to be liked.

Anything that drew attention to Captain Picard risked turning him into a valuable bargaining chip. A failed rescue mission could give the Cardassians a group of valuable hostages. Acting like Picard was an afterthought is solid psychology based on real world situations.