The KOTOR II storyline had so MUCH potential, but it blew up near the end. Too many plot holes, etc - it just looked very rushed. I wouldn't really blame Obsidian for it at all, afterall, they were probably rushing to meet their deadline from LucasArts.
/sigh
Guess I'll hope KOTOR III is better if one is ever made. If Obsidian is ever able to add in a real ending or additional content, that would be excellent.