First I want to say that Episode I is my favorite of the prequel trilogy and is the only one on par with the OT. It’s main problems are confused editing, poor acting from Jake Lloyd, and the midichlorian concept, but otherwise it was a glorious triumph in 1999. Unfortunately, it was too smart and not on par with the audience.
I like how Jar Jar was used, because I think I see where Lucas was going with the character (I’m a Jar Jar is Sith theorist), but poor reception resulted in reeling in the character and inserting General Grevious.
To answer your question about Watto. I think living on Tatooine helped breed a culture of instant-gratification, suppressing competitors, and that manifests best in the races and gambling. The only deal I see Qui-Gon being able to make good with Watto for the parts, besides paying actual currency or winning a wager, may have been to make a deal to squash some competitor junk dealer, steal his loot & haul (perhaps slaves), and make Watto the sole beneficiary minus the transport-ship parts. This is straight-up gangster behavior, and would completely go against the Jedi way. I mean, if you’re willing to do that, then perhaps just cut out the middleman… kill Watto, take Anakin, Shmi and whatever parts you need. (It might be difficult finding them though!) Watto is so warped he would probably respect such action more than someone pleading for mercy. But only a dark-side force user would be willing to tumble down this evil path.
I don’t think Watto has a philanthropic bone in his body, so no, he is not impressed with foreign queens or Jedi temples or anything else. He would probably fit right in working in the greedy Trade Federation, actually, so he’d probably take their side as eventual Separatists. He actually has more balls than the TF leaders.
In fact, you might say that the Hutts and Tatooine are the planet with the original separatists and make no acknowledgement to the validity of the Republic or Coruscant.
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