I really think that they should loosen up on canon, or have multiple different continuities or something like that. Not in the same way as Marvel or DC, though. Maybe they should have no official canon, but a few continuity projects. I don’t know.
But with a fandom so big and so diverse as the Star Wars fandom, having one official continuity is an awful idea. I mean, for one, there might not have been such a poor reaction to the prequels or TLJ if they weren’t the only backstory for Darth Vader, or the only continuation of Luke’s story. If other people could try their hands at those stories, people wouldn’t care if this one particular one wasn’t right for them.
Especially if Lucasfilm wants to treat Star Wars like a modern mythology. There is technically a Sherlock Holmes canon, and a Robin Hood canon, and a King Arthur canon, but they don’t behave the same way that Star Wars’s canon does. They’re a central group of ideas and stories from which other stories radiate out from.
I like what you’re thinking. Really, what we have right now is the worst of both worlds. We have a bunch of content that’s all considered hard canon, yet is rife with contradictions. Either Star Wars should have an airtight canon, and if it can’t accomplish that (which it can’t), then it should open itself up fully to alternate interpretations and retellings, like actual myths and legends. That looser approach might even help bring some of that old fantasy element back to the franchise.