Remember that the Borg Queen has almost exactly this conversation with Data in First Contact... and interestingly the way they dealt with the issue you raised is that it is only when Data gains access to emotion, that he embraces the feeling of superiority to humans. To be sure... its not the first time he actually expresses awareness of his superiority... IIRC he says as much to Reiker during their first meeting in TNG's pilot (correct me if I'm wrong).In truth, a properly functioning Data would have seen the "beauty" in Hugh, and would have probably been more interested in emulating him and other Borg in the Collective. Given his obvious superiority to humans, it would only make sense that he would want to join them, would it not? He could achieve machine perfection in this case.
This is another interesting point because remember that Data has a similar conversation as this with Spock... I forget what episode... but I remember that when Spock makes a similar conclusion, he delivers his trademark "Fascinating" accompanied by his signature raised eyebrow. Maybe I can find the clip...In reality, a being such as Data would undoubtedly realize his "perfect" nature and conclude that he was superior to humans, and not aspire to be one. The writers of ST:TNG unjustly anthropomorphized him into being a human wannabe for the purposes of creating drama, and a "lovable" character that the audience could relate to. His struggle to be human was a parable of our struggle to be better humans. His real impact on the series could have been much more profound, IMHO.
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