Heh, I still think Episode I provides nice background info and sets the scene at least for Episode II. Why not slot it in between IV and II? What's the harm?
The point is that Machete order is about Luke's journey - and Episode I doesn't make much sense in that story. If you leave that out, the stories between Anakin and Luke are very similar - they're both whiny cocky bastards when we meet them, both grow in power, both take a turn to the darkness - but Luke ends up being redeemed, and then redeeming his father in turn.