What I would’ve done:
The Jedi would’ve been a small religious order, their numbers somewhere between 100,000 & 1,000,000. They would’ve served as diplomats, advisors, and during the Clone Wars, as tacticians (they wouldn’t have fought on the battle field; that’s stupid). The general public would’ve had very little knowledge of the Jedi, and even less exposure to them.
The Sith would’ve either been extinct or on the verge of extinction on an isolated backwater planet. Anakin would’ve been inducted into the Sith religion by the Sith spirits on Korriban. Palpatine wouldn’t have been a Sith at all, but an independent dark side sorcerer.
As always your ideas make way too much sense to ever see fruition. I disagree with the Jedi never fighting. Knights have steeds; which would be starfighters in a Space Opera setting.