This Moriarty is what I’m talking about. Creepy!
Also, from the memory-alpha page for this episode:
The original ending filmed was cut from the episode. Hurley recalled, “In that ending, Picard knew how to defeat Moriarty. He tricked him. He knew all along that Moriarty could leave the holodeck whenever he wanted to, and he knew because when Data came out and showed him a drawing of the Enterprise, if that piece of paper could leave the holodeck, that means that the fail-safe had broken down. In turn, this means that the matter-energy converter which creates the holodeck, now allowed the matter to leave the holodeck, which was, up to that point, impossible. When he knew that paper had left the holodeck, he knew that Moriarty could as well, so he lied to him.”
This ending was removed by Gene Roddenberry, who claimed that it hurt Picard’s character by making him look deceitful. Hurley disagreed, noting, “I thought it made him look clever, and since you are dealing with maybe the most profound criminal mind in literature, you’ve got to be careful.”
I LOVE that idea for the ending so much! Picard tricks Moriarty, yes.