Those are some nice ideas, Avatar. Personally, I think the duel needs a lot of work. A lot of people here would rather not have it at all, but I think it should be in the movie. I think Yoda would at least try to take on Sidious, whether he could win or not. It's just the execution that is awful.
At least the fight with Dooku was built up with them sizing each other up, testing each other, and then finally drawing their sabers. Like the idea of Yoda with a saber or not, they made a big moment of Yoda pulling out his saber. In his duel with Sidious, there is none of that. The dialogue, the staging, the choreography, it's all bad. Especially in the beginning of the duel in Palpatine's office. The part on the rising platform in the Senate is pretty badass, but then it's ruined by the really lame final part with Sidious giggling like a school girl and Yoda's retreat.
I think it would be wise to show as little as of the fight as possible. Maybe it could be presented as a flashback, so it could be shown a bit more as a montage with dramatic music and editing to sell the fight.