I believe Chris Avellone & Co. had about a year to do KOTOR 2. Like Troika's Vampire: Bloodlines, it was an ambitious effort that was affected by time constraints, much more adversely than even Bloodlines was (anyone can peruse the SW and Obsidian boards as well as the TSL Restoration Project boards to get an idea just how they had to go about hacking up the plot to "finish" on time). As Black Isle, they were rushed for Planescape but managed that one quite well - there were very few things cut as far as most people have determined; a handful of items and a few quests.
I think probably 8 more months and KOTOR 2 would have been a great game, albeit a darker, more thoughtful/disturbing game than KOTOR.