Supreme Chancellors were always just educated politicians (somewhat) on matters that affected the galaxy. However, did you know, that during the old times, you could only be a Supreme Chancellor if you were a Jedi? That means Palpatine would never have been in power, had this rule still have been true. However, it could make for something even more sinister, which is Palpatine pretending to be a Jedi for decades, only to turn on them once he was in power as Supreme Chancellor.

Imagine Yoda as Supreme Chancellor, or Windu, or even Anakin (which we all know wouldn't work). I think it's a much better system.

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