I will try and break it down for you best I can in hopes this answers some of your questions:
"How can they better organize and run the community more efficiently?"
In order to run any type of organization, the leaders must know fully what they are representing and most importantly, the wants and needs of those people. What better way to know that then to have the people vote for their own representatives that best represent their causes? Lets say some people want to run a tournament. They are going to want people to run that tournament that conforms to rules that they are use to and know the in's and out's of problems that could arise.
"Like the moderators havent done a good enough job....if you curse, you're gone, if you put offensive stuff on here, you're gone...how else can you improve or expand on that?"
I think you have a misconception that Senators will be moderators of the forum. That is not true. Senators will have no power whatsoever in banning people or any form of forum magistrates. LIke you said, the Mods already have that secured and are doing a fine job on it.
"If the Senate does start doing anything its just gonna be to make things anal cuz the forum is organized well enough."
The Senate won't have the power to enforce their proposals UNLESS the mods give the green light on it. I am assuming that everything must be Ok'd by them first before the Senate gets together and issues out a statement of some sort.
"And as i said before, how are you really gonna make people do something or follow something besides kick them off..which the moderators can do already."
Like I said above, that will totally fall into the Moderator's lap. The only time any Senator can boot somebody is from a tournament in which case their must be proof of that individual either cheating or causing havoc which interferes with other gamer's fun.
"I want me to tell me one good and valid improvement a Senate can make on these forums?"
Well first off, I take it you want US to tell YOU...
Like I said above, Senators will help voice the wants and needs of the forummers to the mods. To have literally hundreds of people bombarding the mod's with pms and threads, they could simply voice their opinions to their representatives (Senators) in which case the Senator can then take it to the Mods or the Chancellor. This makes for a much neater and organized method. Think of it as going up the chain in other words.
"I think people just want some kinda status, but honestly when the game comes out i'll be spending more time playing the game than reading the forums and how can a Senate affect gameplay?"
Status has nothing to do with it. If any Senator wanted to be elected only for status, then it will show on their behalf of their performance and should likely be removed and replaced by somebody who really cares for the gaming community. As per effecting gameplay, again, the Senators will make the rules for Tournaments or Leagues. I think you have a misconception that Senators will rule over the zone. Remember, almost 75% of the zone who will play SWGB probably do not even know of this site nor will recognize any Senator or form of Government.
"Are you guys gonna vote out sheilds so everybody on this forum agrees to not use shields?"
Senators will not make radical rules like that unless they have a fun tournament. Lets say a Tournament is held every week. Most likely each week's rules will be unique from preventing the tournies from becoming stale and always keeping the community well entertained and satisfied. One week might very well be no shields allowed in this game. If somebody did put up shields, the other player would only have to take a screenshot of that and show the Senator and that player would be ejected. Then the Next week can be only Tech 3 units allowed to fight. Get what I am saying?
I hope I answered your questions =)