I know wanting to dub over Jar Jar is an idea people go to, but how about overdubbing Watto to downplay the idea of being a Jewish stereotype? Instead of being deep and gravelly, he could sound more warm but cautious. It would also help with edits where Qui-Gon frees both Anakin & his mom.

I know it would potentially just swap one steryotype for another, but I think an italian accent would fit Watto like a glove. Again, I think it would work if you tone down his threatening nature and more just a guy trying to survive.