This game felt like a step backwards in writing quality compared to previous BioWare games like Baldur's Gate 2, what happened?
Dunno, I played both games within the last three or four years and neither had particularly strong plots or villain writing. BG II improved a bit in ToB, but most of the base game was just running around doing a billion quests that didn't relate to anything wider. About the only two things that BG II had that were objectively better writing-wise were the flavor of responses your PC could make in dialog, they were generally more clever and smarmy, and the amount of companion dialogue, however even that tended to surface at wildly inappropriate times. As for the quests themselves there are a handful that I can remember, Firkraag, the Planar Sphere, De'Arnise Keep but none because of writing quality. Even BG1 was better in that department. The moral dilemmas in BG2 were also severely lacking, very easy to track which was the good/evil choice. KotOR 1 at least had a few quests that weren't as clear such as Sunry on Manaan, who to betray on Korriban, the Lost Droid on Dantooine, the Hero Slaver on Kashyyyk etc.
One step forward, one step back.