If you combine the sort of editing that Slumberland and others have used with redubbing (Timstuff did a good job at making Jar Jar sound less annoying : http://www.youtube.com/watch?v=uiGyJB7-LpA)you can create much more rounded characters out of them.
In my idea they are the indigenous people of the planet and originally saw the Neimodians as gods when they arrived on their planet (ergo the statues).
They still resent the Naboo and their official representation in the Senate (they see them as a occupying force albeit a now reasonably peaceful one).
Jar Jar is a token representative (he doesn't even get to vote in the Senate and he's looked down on by his own people for mixing with the humans).
He isn't as stupid but his now toned down clumsiness comes from living most of his time away from any action on Coruscant.
By the end of the film which is restructured to start in the capital where the invasion has started with the queen off world and leads to Tatooine and a final battle to reclaim the planet at the end.
Sidious/Palpatine wants to create panic to start an arms race so if the Federation are successful he would use that as an outrage to set the senate against them (their allies would either sit on their hands or back them up).
If the Federation lose they will be isolated for their act of hubris and will resentfully start trouble (like they do anyway).
By removing the face from the hologram (like JasonN and Magnoliafan did) the Feds would not be able to point the finger at Palpatine.