I think we might be overcomplicating it a little. Let’s take the whole concept in a logical order:
There’s no true justification between Rey’s parents selling her for drinking money, and them loving her so much when they left her on Jakku to protect her. Her memory of them traumatically leaving her on Jakku is seen onscreen, as is the ‘corrected’ one where they showed their love for her first. Since them leaving her was so traumatic, and she was young, I think it’s acceptable that she misremembered that. But, them ‘selling her for drinking money’ is said by Kylo when he’s trying to manipulate her, so can be an exaggeration. I think the cleanest solution is to preserve both the knowledge Rey shows she has in TLJ (that they were junk trader nobodies and aren’t coming back) and that they likely died forgotten on Jakku, but they did love her (parents love their kids) and that Klyo’s correcting that information for her here. That whole concept, then, only needs to be further solved by giving the reason for them wanting to hide Rey.
Then, consider the larger issue that we’re trying to solve here, which I think we have a consensus on being the fact that Rey Palpatine in the original version of TROS requires her father to be a nobody-Palpatine, which really doesn’t work. And as JJB pointed out earlier, having Rey be a spiritual Palpatine rather than a biological Palpatine (by either cloning or using the force to create life) solves that.
I think there’s value to the clone angle, in that it helps explain Palpatine’s return and Snoke, BUT it has two issues. Firstly, that both of those are more easily explained by just explicitly having at least one line somewhere in the film about ‘cloning’ or ‘experiments’, which TROS v4.0 already does elsewhere, making it unnecessary here. And secondly, and more importantly, having Rey be a direct clone of Palpatine makes her arguably MORE Palpatine than less, even more Palpatine than being his offspring. And we’re trying to loosen that link a little - ‘spiritual Palpatine’ still leaves the most wiggle room and ‘certain point of view’.
So, back to the idea of Rey being a spiritual Palpatine. Again, I think JJB’s earlier suggestion of Rey being another case of someone ‘used the force to create life’ is the right move. Palpatine told Anakin that very overtly in ROTS, and we know Anakin was a virgin birth, so even if George’s intention was only implied onscreen, it’s clear enough that this is a valid mechanism established in the canon. So, in our new dialogue we could arguably just call back to ‘using the force to create life’ and have her parents (nobodies) influenced by Palpatine into birthing Rey. That, I think, needs to be the core of how we solve the two major conflicts, and also explains why her parents sought her protection - and anything beyond that is a bonus.
But onto that bonus. This is the area I think we’re overcomplicating, by adding too many wrinkles. The dialogue shouldn’t be too expository, nor add too many new angles. Remember, Kylo’s mainly trying to communicate ‘You’re powerful and I needed to confirm that, here’s the new perspective on your identity, I want us to work together to destroy Palpatine’. A large infodump risks muddying the waters here, so I’d strongly advocate for a light touch.
Consider: This is the end of a trilogy of trilogies, an episode designed to close down a lot of what came before. And Disney know there’s a huge audience sentiment toward something truly new, away from the Skywalker family mythology - they are unlikely to keep retreading this ground. So our meta-focus should be in using established canon to conclude this phase as cleanly as possible - to fix the inconsistencies, justify the existing choices, and wrap up outstanding arcs - not to introduce new interpretations and perspectives that overhang characters and concepts beyond this movie. This is the last suprising revelation that uses established context to carry us to the end of this era, so that new ideas can follow.
So, with the priority of solving those problems whilst keeping the dialogue in line with Kylo’s priorities and our need for elegance, I think acknowledgment of Vader being a Palpatine-creation is the most beneficial, but with a light touch only. As we’ve discussed, making both Rey and the Skywalker line spiritual-Palpatines gives us a load of great implications, including why Leia turned from the Jedi, a better explanation for the Dyad bond, and better later justification for Rey claiming the Skywalker name. And, in the moment, it serves Kylo’s dialogue as a further reason for the two of them to ally and see eye-to-eye, and permits the shades of grey between them.
BUT, I think we can avoid a lot of other plot threads. Getting too detailed about things like there being a ‘Skywalker bloodline’ and a ‘Palpatine bloodline’ I think is overkill, especially since new canon won’t reference that. Bear in mind also that Kylo’s information comes directly from Palpatine, who is both a potentially unreliable source of information, and not one to infodump beyond what’s necessary. And adding in the wrinkle of the (lightside) force being involved in creating the Skywalkers (or freeing their line from Palpatine), or getting into any detail whatsoever about the Chosen One prophecy, I think is also a step too complicated, and another thing that future canon won’t acknowledge. I don’t think we need to explain why Palpatine chose Rey’s mother (just like we don’t know why Shmi was chosen), or how Ochi plays into things beyond his existing appearance in TROS. I don’t think we even need to explain why Ochi’s ship appears twice - that could just be another of the same model (we also see one in Andor).
As minor additions, I think it’s elegant and ‘closing’ to explain the Dyad as ‘raw power’ as that’ll pay off later, and elegant to use the Lor San Tekka/Luke angle to justify the choice of Jakku.
So, in summary, I’d say all we need to convey is:
- Your parents were nobodies, Palpatine used the force to create life in your mother, they fled towards Luke to protect you, they didn’t give you up and were killed.
- That’s the source of your (dark) power, why Palpatine sees you as his heir, and why you dream of the throne.
- Due to our shared origins, we are powerful together, and understand each other uniquely. Palpatine is a monster, we have a grievance against him, and we should defeat him together.
Later dialogue covers the revelation that Palpatine wants to ritually inhabit these hosts (and the viewer can infer about the Vader bloodline if they want), and that he’s suprised he can consume the Dyad power, so these also don’t need to be covered here.
As final thoughts, aligned with this I’d use two other places to modify the dialogue to best support this. Firstly, by having Leia give up her training out of fear of her inner dark, as we’ve discussed. And secondly, when Rey visits Luke, I’d have him acknowledge she’s ‘a Palpatine’, but confirm that Vader (“my own father”?) was created by Palpatine too. That confirms what Kylo’s told her, but gives her hope too (Luke overcame his origins), continuing to line up her taking the Skywalker name cleanly.