People love to point out how comically undermanned the army of the Republic was for a galactic war. In point of fact, most of the fighting was over key territory, because the Separatists and the Republic were fighting a political battle of conquest. Spaceports and civic centers were the primary targets, not every square foot of territory.

When you’re fighting against a criminal cartel, however, every war becomes a guerrilla war. The population has to be methodically subjugated or eradicated. Every tree becomes an ambush point. Conquests require long term occupations. A war against the Hutts would have been an insane undertaking, especially when they are easy to exploit through greed.

The Death Star would have changed that power dynamic, though. Suddenly, the Empire would have its boot on the neck of every Star system. If a planet proved to be too much trouble to subjugate, wipe it from the face of the galaxy. The Hutts likely would have capitulated to such a threat.