Declaring peace wouldn't get him both armies, nor would he even be chancellor. He became chancellor due to the attacks by the droid army and the vote of no confidence from Jar Jar. He only had real control over the clone army. The separatists were tricked by him into building their army and...
That doesn't mean he had enough to build a two large navies worth of capital ships, buy arms and armor for two large armies, and pay for the complete building of tens of thousands, if not hundreds of thousands of droids.
The Blood Magus can inflict 1 point of damage to himself with a cut and use that blood to take the place of cheap components. They can permanently sacrifice 1 hit point in the process of creating a homonculus. For 3 hit points of damage he can do an extra d6 damage with a spell to all targets...
With what money, though? Arming a clone army is expensive, and I doubt Senator Palpatine had the resources to do it. He tricked the separatists into spending the money on the droid army.
At least in some editions you could spend them to fuel spells/abilities for some classes or prestige classes. Blood magic. Also, hit dice are a currency that PCs can spend in 5e to get hit points.
The Spellthief in in 3e that could steal spells along with the slot to cast that spell. I can't remember specifically, but I'm pretty sure that there were other ways to lose slots.
I was at a comicbook convention back in the 90's, maybe San Diego. During lunch we left to go to McDonalds and while there we saw 4 of the Emperor's imperial guard there in full uniform ordering Big Macs.
Jedi continuously using the force suffer mental and physical fatigue, so they eventually have to stop using the force until they get some rest. Who is to say that isn't a force point pool?