The
Republic was at peace, in a general sense, because there was no major, galaxy-spanning conflict up and running prior to the Battle of Geonosis, but the Republic did not claim jurisdiction over the entire Galaxy Far, Far Away (a significant plot-point in
The Phantom Menace, after all) and even within the Republic itself, there were all sorts of smaller, more limited conflicts like the civil war on Galidraan or the so-called Stark Hyperspace War (both of which ended up coming around to bite the Republic in the ass, in one way or another). The brief hostilities between Naboo and the Trade Federation also fit into this category (and
@GeneralFriendliness can probably correct me if I'm wrong, but my recollection is that the LucasArts TPM tie-in game
Star Wars: Starfighter goes into some detail explaining how fighter pilots in the Royal Guard of otherwise-peaceful Naboo gain combat experience by basically hiring out as the SW equivalent of Rhodesian mercenary pilots in the African "brush wars" of the 1970s/80s/90s), so there was definitely an existing market for military equipment of all sorts in the pre-Clone Wars Republic (and in areas outside of the Republic itself, like Hutt Space, the Hapes Consortium, the Mandalore Sector and so forth).
Again, not that I disagree, but boy does that all sound more exciting than a "trade dispute" to hang the first movie on. To quote Jeff Goldblum: "Are there going to be any wars, in this star wars of yours?"
But that would undermine a great deal of the pathos and tragic hubris of the late Republic-era Jedi Order that taking control of a mysterious and conveniently battle-ready army out of nowhere represents.
I honestly can't be sure your level of seriousness to determine my laughter routine.
Let me put it another way using a different plot point:
"We must train Anakin because a prophecy says so." Isn't tragic or hubris - it's plot railroading the characters.
"We must train Anakin because he's so naturally talented he's teaching himself some force tricks on his own and could be very dangerous and our way is the only way." THAT's getting closer to it.
To get pathos, tragedy, hubris, etc you need to have the characters be able to choose a path to salvation, but unable to do so because of dogma, characters flaws, etc - something that could be overcome, but we know wouldn't.
If you wanted to make it all those words about the Jedi, you'd have to like... off the top of my circuits, say have a scene of Obi-Wan testifying to the Senate how freakin' suspicious the army is and that it shouldn't be used. Then a senator counters about how all the paperwork looks legit, they only have Obi-Wan's testimony, plus this was all set up by some other Jedi (Sifo-whatsizname). Then Obi-Wan is torn between possibly tarnishing Sifo's reputation, maybe even letting out some secret of the Jedi into the public, and preventing this army. He sides with the Jedi's traditions, reasoning that the Force can help them overcome whatever danger it represents.
Hm. Really episode 2 should have been about Obi-Wan investigating Sifo and Dooku missing shouldn't it? It is hilarious to think that if Nute Gunroy never demanded Padme to be killed, then Jango wouldn't have gone and left behind a clue to the planet with the ready-made military and Palpatine would have never gotten his war...
they plot holes, though?
Ok, technically not, it's more faulty character motivation.
Minus the Republic/Jedi being taught "to prepare" for a future conflict, that's kind of how the Prequels actually played out...
Not on screen, just in all the patchworking other writers had to do to get Lucas' vision to actually work.
I initially figured that Sifo-Dyas was an alias used by Dooku (since he also arranged, under the name Tyrannus, for Jango to be the clone template), but when I found out that Sifo-Dyas was supposed to be an actual Jedi Master whom Dooku helped commission the creation of the clones (hence the Kaminoans' total non-surprise at a Jedi showing up to look into the status of the clone army ten years later) and then betrayed and killed, I liked that explanation much better.
Just take a minute a think about the original alias. It was going to be "Sido-Dyas." It's literally Darth "Sidious" pronounced with a thick accent. Replacing 1 letter led to a whole new character being created. C'mon! I thought this was a board dedicated to savoring autism. That's some top quality there. (It also, again, means the entire prequels have to run on prophecy - which is weak-ass shit.)
It would have been great if the alias used was "Bob." I can see Obi-Wan now... "Bob? What a strange name. I've never heard of anyone with a name like that."