The main objections to Palaptine and Yoda’s fights in general seem to be that they diminish these two powerful being to just another computer game boss.
Yoda is always dismissive of weapons and Palpatine describes the Saber as a Jedi thing so it makes no sense that the two should fight with Sabers.
Having Palpatine kill a Jedi with his own weapon for laughs fits in with his twisted sense of fun but I can’t see him having one himself.
If the Yoda and Palatine fight was in the nature of the later half of the fight (throwing architecture and energy around) that too might be redeemable but the silly facial expressions and dodgy effects would be difficult to work around.
Having the Emperor saved by Clones would undermine his power (he has just won two wars that he instigated, he has exterminated most of the Jedi and brought down the Republic).
It is indeed an interesting view of those two characters, and I could easily accept your interpretation, and with clever edition it could be made to have them fighting only without sabers (it would only become a short fight, but it isn’t a big problem IMHO).
Although Yoda doesn’t like weapons (and GL himself said once that Yoda doesn’t fight but he probably would deny it now) I must only say that despite those facts, Yoda using a saber isn’t something absurd (it is a jedi weapon and he’s a Jedi, so it is only reasonable that he uses one). And he also said “Destroy the Sith we must”. Palpatine using a saber is something more difficult do explain, since as you quoted him saying, it is a “Jedi weapon”. But his apprentices also use sabers, so he could be only acknowledging Luke as a Jedi by the fact that he had a saber.
The question about his power being undermined by being saved by troopers… I think that ship has sailed when he was easily killed by Darth Vader (something he wasn’t able to predict and wasn’t even able to put a fight against Vader (something I hope someone can fix in a future ROTJ edit).