Isn't the Sith "Rule of Two" instituted by Darth Bane really STUPID?

I mean, all the Jedi have to do is kill TWO Sith, and the line is extinct!!! Yeah, the Sith may have other allies working with them, but only a Sith lord can train another Sith in the ways of the Dark Side, so if they're all dead... You see the problem? If the Jedi had detected Palpatine at the end of "The Phantom Menace" and killed him, that would've been the end of the Sith, since the only other Sith was Darth Maul (who got killed earlier in the flick)...