It is fine. Or, rather it would be fine, if it was really set up like that. But large parts of both KotoRs were unfortunately all about getting better lightsabers, by hook, crook or just throwing money at people, which is absurdity.
See, the thing is, loot and merchants have to be appropriate for the specific setting, and certainly not reality. And games that promote a gear treadmill and Monty Haul acquisition are really off in the Star Wars universe. Shops are for extreme weather gear, spaceship parts and mundane crap, not Even More Better lightsabers or blasters. So credits and shops really should be irrelevant and useless.
For a D&D style fantasy adventure with dungeons? No, not at all. You've got your shoddy starter armor, and the armor you dream of gathering gold to obtain, and then the legendary stuff you can only get from stabbing some (hopefully monstrous) fool in the face. Plus assorted supplies, bits and bobs for better dungeoneering. It is a genre that prides itself on having both amazing loot and a giant pile of cash you can swim in, even if there isn't any real 'point' in it. Not that most people, (as opposed to dedicated warrior monks) really object to the accumulation of cash in and of itself. Alchemical substances, scrolls, crazy one shot items, useful utility items, there is a wide range of stuff that a good fantasy game can indulge in to have useful shops without selling Real Ultimate Power.