I think that's where a lot of the dispute between myself and others has arisen. I view a "rpg" as something quite different than I suppose the industry definition.
For me, a rpg is one in which I play a "role" and actually feel like I become that character and start to get pulled in to the main story, as if I'm the leading character in a movie. I felt KOTOR did that, with me being the lead "actor" and the story pulling me in. I did not get that same "immersion" from FO, because I didn't feel the main story was as involving. Yes, the freedom was there, but I don't believe that freedom=roleplaying.
Again, that's just my own personal opinion and it obviously doesn't coincide with what the industry defines as a RPG, but for me that's what it is, and that's why I believe that people underestimate the "choices" that KOTOR provides.