Isn't there a way to set up a server that generates the server seeds and sends them to just-dice, but that doesn't allow those seeds to be read out ahead of time, i.e. before they are sent?
You'll always have an entity that is able to determine the server seed.
Can you explain why that is the case? Isn't there a way to set up as a system that, once it is running, doesn't allow changes to it anymore, i.e. it does what it needs to do (sending server seeds, reveal one if asked by player), but doesn't allow additional changes or attempts to read out data?
If that is a problem that is provably impossible to solve (say, a know problem in CS), then I'm not going to continue arguing of course

To calculate the result of the roll, the server MUST have the server & player seeds, and the nonce. With those three pieces of info it calculates the hash and generates the pseudorandom number. The service is called "Provably Fair" because it is fair in the sense that since we have the hash of the server seed ahead of time, we can see that the server did not alter the server seed to alter the result of the roll.
However, that doesn't protect you from the server (or someone with access to the server, such as [theoretically] Dooglus or a hacker), from knowing the server seed, and thus knowing what number will roll each time, thus allowing that person to bet in such a way that they eventually come out a winner, even if they win/lose in the right proportions and make their play seem random.
I AM NOT TRYING TO SPREAD FUD. I am simply explaining the weakness of the system (Again, Dooglus said this stuff himself at the beginning of the thread).
There are ways of avoiding this situation where the server knows the server seed before you choose hi/lo, but it involves using, for example, the blockchain, since that is a trustless source of consensus. The way it works (I know some sites do this), is that you chose your roll (hi/lo) or whatever before block T is found, and then after the block T comes out, the roll is calculated as Hash(part of block T, client seed,....) etc.
The problem is this is slow. If you want the fast style of play like in JD, then you need trust,
** as of right now **.
If you can find a way to keep the fast style of play and make the system trustless, that would be an amazing innovation. I don't think it'd be correct to say it's impossible, it simply hasn't been developed yet.