This game and the stories that have been created have been phenomenal. However, given the sheer quantity of minor quests developed, it is entirely possible that a few quests were not fully comprehended in their impact/development. I think there should be one more level of this minor quest, and that should be to investigate the claims of subterfuge, and then go from there. If the senator really is making deals with the devil, then it should be LS to give the real documents. If he's not really being subversive, then LS to give fake documents. As it stands now, the quest options and rewards given are backwards or not based on thorough enough information.

Oh ya I forgot that democracy = light side.

Agreed -- the overall mission arc here is to prevent the Sith from taking over the Republic. If a Jedi knew that Senator Palpatine planned to overthrow the Republic, by the "lawful diplomatic democratic" means that he did, would it have been aligned with the light-side to help him have his 'free speech'? This quest was very poorly setup -- while the individual dialogue options may seem to correlate with light/dark, the overall understanding of the situation is the opposite of what's awarded.