If the Jedi stay alive, they will save the Republic, period. You are absolutely correct that, from a logical, balance-of-power perspective that doesn't make sense, but the Force don't give a **** about any of that, and the Force ultimately gets to decide. Also, if the Jedi stay alive, they almost certainly assassinate Palpatine successfully (if Obi-Wan had gone with Yoda to face him, they might well have). Yes, there would still be a massive war, since there is a huge faction within the Republic that supports Palpatine, but there's also a large opposition faction that doesn't and is simply intimidated into silence and if the Jedi survive that intimidation fails and they join with the Jedi to fight. And the Jedi would ultimately win.
The Jedi did look the gift horse in the mouth, they just didn't look close enough and didn't use the right tools. Notably, they relied heavily on their ability to sense things through the Force. That included evaluating the clones and discovering that they were heroic, valiant, and possessed of deep camaraderie. Everything the Jedi knew to trust told them 'the clones are cool, no worries' (TCW basically comes out and says this straight up in a council meeting at one point). That was a mistake, and a big one to be sure, decisive even, but it's not like the Jedi didn't investigate at all.I think the Jedi being presented with an army of slave soldiers and reacting with "okay, cool, I'm a general now" without even looking the gift horse in the mouth is also pretty damning from both a moral and a pragmatic perspective, although I guess it makes sense that an order entirely composed of people taken from their families as young children and trained to be warriors might have a skewed perspective about that sort of thing.
Part of the thing here is that because the Jedi had been essentially unchanging with regard to everything for 800 years - because of Master Yoda - Palpatine could study them and predict exactly how they would react to everything. And, because the Jedi had basically convinced themselves the Sith didn't exist anymore, they were almost completely blind to how vulnerable they were to this kind of predictive counter-planning.