I agree wholeheartedly that Loki is infinitely better than Odin. This scene proves Loki loved a mortal once or even still does. Look at his face as he speaks. He is trying to save his brother from the heartbreak.
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I think it has to do with how Odin saw them. Odin saw Hela as a tool for conquering. Odin saw Loki as a tool for peace with the Jotun. Taika may have meant to highlight that they were both used by Odin with different results by having them look similar.