I think the idea of Palpatine watching the duel between Obi-Wan and Anakin would have been cool. 'Cept, I think that in the case of making it work with other ideas already posted here, maybe Palpatine could be watching through a holo-feed or some sort of viewscreen. Maybe after the duel is over we could do a zoom out from Kenobi standing over the ledge that Anakin just fell over. Have it zoom out and have the screen eventually change to an electronic monitor and as the camera keeps pulling back we have a camera-over-the-shoulder shot of Palpatine laughing.
What do you think?