Yes, it may well continue to be embodied in people. And this will continue to be a very bad idea and such people must always be stopped.
It will always continue to be embodied in people; this is inevitable. As such I don't see the substantive meaning in calling it a "very bad idea". It is the way things are - unless every living thing in the galaxy is forced, somehow, perhaps by magic, to become uniformly good. And while stopping the Sith is a practically achievable outcome, "stopping" every living thing is not, even if one were to focus only on stopping those who actively promote more evil than good. There would simply be too many of them.
The balanced galaxy we are shown is one with the Light Side completely triumphant and the Dark Side completely defeated.
But we are shown no such thing - unless you're using "Dark Side" and "Light Side" as code words for "the Sith" and "the Jedi". If a phrase such as "completely defeated" could be taken to mean "put back in equilibrium", that might work, but it really doesn't sound like it is meant that way. The very definition of the Force argues against the idea that it would be uniformly good in its natural state. It is supposed to be an energy field generated by all living things - in essence, generated by the act of living. It has been described as the combined vibrations of living things. In what universe would the energies generated by living things ever be uniformly good in nature?
Who cares, if its not being embodied in any way which has power? It's literally irrelevant at that point.
You seem to act as if Jedi and Sith are the only relevant beings, as if the light side is generated solely by the Jedi and the dark side is generated solely by the Sith. But Force adepts constitute a vanishingly small percentage of the living things in the universe. The dark side does not have to be "embodied" in Sith to have power, or else there would have been no reason for anyone to become a Sith in the first place.
What they do is stop it at all times. Render it powerless.
It's far more widespread than anything that could be stopped by the Jedi at all times, isn't it? There are only so many Jedi, while there are uncounted planets out there with vast numbers of lifeforms on them.
And I will remind you that GL directly and unequivocally stated that balance is restored by getting rid of evil in the universe. Sure, we don't have to overdo it in taking that literally- he doesn't mean the entire concept is annihilated from the cosmos
It makes no sense at all to take that literally: to act as if "evil in the universe" means "all evil in the universe" or, even worse, the capacity for evil which arises from free will. On the other hand, if we interpret "evil in the universe" to be a verbal shorthand representing only the leading forces of evil - namely the Sith/Empire - not only does it then match what we see happen in the films, but it also matches every other statement Lucas has said on the topic, including all the ones which outright contradict the nonsensical overly-literal reading. For if we take the indefensibly literal approach it means that Lucas - for one brief shining moment - believed one thing in 2000 but believed the exact opposite in, for example, 1975, 1977, 1980, 1983, 1999, and 2002. As a hint toward what Lucas really means when he says "evil in the universe", we might inspect the "Birth of the Lightsaber" featurette: "So he was fighting as hard as he could; he was fighting the man who killed his father; fighting the man who killed Obi-Wan Kenobi; fighting the man who would personify evil in the universe." We can say that Sith "personify" evil in the universe without making the mistake of treating them as though they are the aggregate totality of all evil anywhere.
What there has never been in the SW story, at any point, ever, is any suggestion or demonstration that the Light Side could ever be a problem in this cosmic equation.
That's not true. It was suggested outright by the Father in TCW's "Overlords". That it is not something which happened in the saga we have so far does not mean that it is impossible in the SW universe.
And to remind again: there can be no balance without the Jedi
Of course there could be balance without the Jedi. ( And if we're going down the road of character infallibility, there are other characters who might be considered. ) Take a hypothetical condition of balance, such as the one which is supposed to be restored as a result of ROTJ. Now assume that for some abstract reason the remaining Jedi are removed from the stage. Is there not still a balance between the sides of the Force at that point? Or consider the time before the Force-using orders arose in the first place, or a time before the emergence of higher-order sapient life forms. Do you assume that the Force could not be balanced in these cases? In practical terms the Jedi are only required for balance in the sense that they are ultimately, for narrative reasons, the only ones who can be expected to successfully defeat powerful darksiders... when such darksiders are already running amok.
The 'natural balance between good and evil' appears to be one where evil is defeated and good has all the power.
A balance between them would imply that they would have equal power. Certainly having "all the power" connotes the exact opposite of the intrinsic meaning of the word balance.
Balance is when that evil has no power.
Hardly. Balance connotes that evil is merely not dominant, that it does not have more power than good. Not that it has no power at all.
Allowing it any power- every time we see it- brings imbalance.
Based only on what we see, there is no particular reason to assume that imbalance is so easy to come by. Lucas said that the Force is thrown out of balance as evil begins to take over. There is quite a large gap between evil taking over and evil having no power at all.
That's Star Wars- good guys and bad guys Light Side and Dark. Good/Light must defeat bad/Dark.
Don't conflate the sides of the Force with the Force-using organizations. These are not equivalent. The balance of the Force is not the balance of the Force-users; Force-users are not the Force. Making an invalid substitution typically leads to an invalid result.
One out-of-step story in TCW is not remotely mainstream though. It's definitely the outlier, and we can see GL;'s views all through the main franchise.
The outlier is the "gets rid of evil in the universe" quote, and only then if it is interpreted in a way that makes no logical sense. TCW's Mortis arc is fully consistent with everything else that Lucas has said, in addition to being consistent with everything in the filmic canon. It is in no way out of step with the franchise, as it concludes ( inevitably ) by reinforcing and foreshadowing what Anakin will do in ROTJ. Similarly, its prominent usage of the yin-yang symbol that represents Taoist duality is mirrored by the appearance of the same symbol during AOTC.
you seem to be applying principles from the real world and not from the larger mythos of SW itself.
This involves the issue of verisimilitude in fiction. No matter what fictional universe you're dealing with, including this one, there will always be a manifestation of principles from the real world. As an analogy, gravity exists: if you stand on the surface of an Earthlike planet and drop a rock, it falls to the ground. Anything being argued here that seems to you to be imported from the real world is only being suggested because it stands to reason that it should hold true in the SW universe as well, barring any compelling evidence to the contrary.
The only way they differ is that the Jedi seem to think the dark side needs to be destroyed entirely
They don't actually think that. It's a belief in the fan base that has been erroneously attributed to them. They only ever speak of the destruction of the Sith, not the dark side itself.
But Lucas keeps changing his mind about the Force works.
No, he doesn't - as far as we know. He only added content about the overall structure of the Force and the mechanism for Force sensitivity, but these facts ultimately changed nothing about what had already been established. They only added to it. What previous statements by Lucas about "how the Force works" are no longer to be considered true?
I think The Father's view of balance was a more cosmic view tbh. That both Light Side and the Dark sides of the Force need to exist pretty equally. Whereas the Jedi are more concerned with not letting a bunch of darksiders grow too powerful.
No inconsistency there.
The Jedi view of balance clearly differs with The Fathers view.
That's not true. As far as I know, the only things we have to go on to determine the Jedi view of balance are the things the Jedi say about balance, yes? Well, what do the Jedi say about balance? As a percentage of their overall dialogue it is fairly little. They link balancing the Force with destruction of the Sith. They say the prophecy tells that the Chosen One will bring balance to the Force. Et cetera. How do any of the specific things which they say about balance differ from the Father's view?