I totally agree about Hayden. He's one of the most expressive actors in Star Wars, but he just has horrible, horrible dialogue. There are some scenes in RotS that - after I've cut the awful dialogue - give me goosebumps with how much better they are.

I understand why you'd want to leave in the Palpy lines here. And originally, I did too. But then I thought, there's just so much dialogue here to express a pretty simple concept: Palpatine is reinforcing Anakin's outburst of anger and the fact that AGAIN, his anger has driven him to kill.
In my edit, Anakin tells us with his eyes that he is NOT okay with what he just did. But Palpatine reassures him, "You did well, Anakin." Anakin looks at Palpatine like, "I'm not really sure that's how you should say it..." but he doesn't protest. We get the same feeling that Palpatine is slowly roping Anakin in, but it's much, much more subtle.
But it only needs to be subtle the first time, to ease the audience into Palpy's role of being a bad influence. He comes on a little too hard right in the beginning.

Concerning the dialogue during the duel, I once thought as you do. But then I thought - the exchanges in the OT had meaning and substance. The dialogue during the duel here feels weak and contrived. But that's minor, realy. The main reason was that it kind of messed up the flow of the duel, the way I wanted to cut it. Though now that I've gone and taken a drink of orange juice, I just had an idea that might work for keeping the dialogue.