They're both in the core worlds. I think Naboo would be good - it's in the outer rim and it shows the wealth and the splendour of the Republic. Of course, this could be negative as it shows them what they could conquer.
I think instead of the Republic being on the defensive, we need to go on the offensive. I'd suggest sending an S13 team to Nal Hutta. That way, whilst the Hutts are in dis-array, we could make a strong barrier across the Outer Rim and begin to push our way outward.
Yeah, the Outer Rim holds lots of valuable assets. I think that the Republic's armies are stretched thin and out-numbered, though. I might put a suggestion in for a military base to be housed on Balmorra.
At the moment Balmorra does not have an active military sector. Not a big one, anyway. The Coalition of Steel Makers and the Local Militia have been sent off to aide the war effort elswhere.