I agree Sidious' reveal could have been a bit better, but I like how the current version plays out.

I guess we were all kind of expecting a big 'reveal' with Sidious pulling back his hood to reveal Palpatine's face, but I kind of agree with the point (I think) Fishman is trying to make: Palpatine mentions being a Sith Lord quite casually because he's goading Anakin into seeing things his way. He doesn't even call himself a Sith Lord until Anakin calls him out on it. He is trying to distort Anakin's views so much (like he did in the scene in the opera house), that being a bad guy doesn't seem all that, well, bad.

The scene could have been written better, I very much agree with that. The writing here is very clumsy. It's like Lucas wants to have all Palpatine's exposition out of the way before Anakin finally comes to the big realization. But this takes so long that Anakin just seems dumb.