It was his kids and his wife and his nephew René. René had recently died and the kids and wife never were but he evidently wanted them in some part of his mind.
He explains it to Troi in an earlier scene; he never felt obligated to carry on the family line because of his brother and René. When René died it wasn’t his own lack of kids he lamented, it was the loss of the Picard line. So in his fantasy there are plenty of progeny for that and of course René isn’t dead.
It was his kids and his wife and his nephew René. René had recently died and the kids and wife never were but he evidently wanted them in some part of his mind.
He explains it to Troi in an earlier scene; he never felt obligated to carry on the family line because of his brother and René. When René died it wasn’t his own lack of kids he lamented, it was the loss of the Picard line. So in his fantasy there are plenty of progeny for that and of course René isn’t dead.
It isn’t exactly a well written scene though.