I rewatched that episode just this evening, and completely agree; fantastic scene. Dukat is a delightful villain throughout the series, but this is one of his pinnacles of bastardy.

Imaginary Kira supporting his twisted logic was a nice touch, too; “Being reasonable only made us bolder”

I think you mean the embryo; it takes some time after being laid for the zygote inside the egg to develop to the point it could be considered a fetus.

That shot of the waiter cackling madly as he fills the bottles has stuck with me for years.