Played KOTOR a few years back. Was better than average for a D20 game, liked linking that and Star Wars. I've played worse, I'd say it's above average in story, gameplay and replayability, but wouldn't put it in my top games list. It's not as bad as people are pissing about.
Really didn't like that all roads led to light sabers. Sure, you could use a ranged weapon, but lets not kid ourselves. It was a waste of points. KoTOR2 at least gave you a light saber earlier. On the other hand, if the movies are any indication, lightsabers are fanservice. So the developers should get a pass on this.
Liked the karma thing, thought that added something. Made it worth seeing both sides. Dialog was bad in parts, but wasn't Bioware flexing the full might of Derp, like they did in every game thereafter.
The ending ruined it for me, though. Not the actual ending, just a long, long, long fight running down corridors to get to the ending. Maybe that was supposed to give it an epic feel, but sending me dark jedis to kill in one every 10 seconds for an hour felt like something Doom would do, not this.
As a developer, you'd be in a no-win situation trying to do something original with the Star Wars universe. There, I said it. You don't like the story? Tough shit. I'm sure when Bioware bought the rights there was 1,000 pages of terms and conditions they were saddled with as well. They did about as well as could be hoped trying to please the gay Star Wars fans, and crpg purists.