I can't even imagine Hades Ones' reaction to this :D
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This would be better because you would use the same character each time like Kyle Katarn. You could watch the same character develop his story over an extended period of time. This would allow for more emotional investment.
It would also prevent nightmare situations like what we've got now with Revan. In KOTOR II, we still haven't determined whether or not our PC from the first game is dead or alive. I mean come on! Now, if KOTOR III is made, we've got Revan running around (or dead) and Exile living or dead. In addition, all the choices: were the two PCs characters LS or DS, is Revan/Exile male or female, did he/she kill any party members or NPCs (if so we can't use those characters again)... ect. ect.
KOTOR should have had a strong, defined PC to begin with.