Interesting debate. There are a few things though...
Billions could be saved? I am not sure about the logic of this. Saved from what? Death by old age? This makes it sound like everyone has a right to live forever. These people owned it, established it first, albeit only 300 years ago, and settled there. They aren't members of the Federation and so aren't subject to "Compulsory purchase orders" any more than an oil-rich sovereign island in the middle of the Atlantic would be in current times, even if the inhabitants were only using it to fry their chips.
USA was only established about 200-250 years ago, are we to believe that the rest of the world has a right to come and take their resources? Maybe leave enough for the native Americans. How many millenia they've been there is irrelevant, it's their home now and has been for hundreds of years.
But the other point is this. 600 people take up a tiny part of an entire planet. Anyone else who wants to benefit from it, simply come and live on that planet, establish an exclusion zone (presumably the Baku wouldn't like intruders and it's only fair, they were there first).
I believe Picard mentioned this, and the response was something like, "Who would want to?"
They couldn't crack the technology? That is the Federation's own problem. They'll just have to keep working on it, they have the thing there to observe. You want eternal life, you'll have to work for it.
One other thing, and that is on Federation policy. The feds pride themselves on non-interference and each world having a right to govern themselves, live their lives how they see fit, and not to be interfered with. It is one of their highest values. OK the Baku didn't evolve on this planet, which exempted them from the Prime Directive, but this is just using the letter of the law to defeat the spirit of the law. (And as someone else posted, their civilisation has actually been around longer than the Federation)
If the Federation did this, they would have to admit they are no better than the Cardassians and would be forced to admit that their "Prime Directive" is a sham which can be overlooked whenever it suits them, as opposed to the fundamental guiding principle that they claim it to be.
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I said there'd be a pandemic when pigs fly!
But the swine flu.
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