Going out on a limb here, I found that the KotOR was actually slightly harder on the grey Jedi than the first, which is one of the reasons I like the first better. While the sequel allows for attributes to lessen the cost of using opposed force powers, it seems that the designers assumed that players would, of course, choose at the outset* whether to play a naive, ideology blinded palatine Light-sider or a psychopathic, sociopathic, foaming at the mouth mass murdering, power mad Dark-sider, making every choice along the way follow that initial decision. This bothered me on multiple levels.
It and the first game make the tacit assumption that to be Light-side means to be stupid and easily duped, while to be Dark-side means to be inconstant and power mad. They leave only one avenue open for evil: that of the tyrant. What if I prefer a more subtle brand of evil? As for Light-siders, why must I never make decisions that have a firm basis in game theory? The Kashyyk computer scene bugged many of my friends for that reason. They try to emulate Winston Churchill and get slapped with dark side points for their troubles? Apparently being good means being an idiot of a leader. If this is how the designers view alignment, I'd hate to be in an actual pen & paper RPG with them. They're the type that play "Lawful Stupid" paladins and "Psych(a)otic Evil" rogues. <_<
The real kicker of a difference between the two games' takes on alignment was the requirement for PrCs. WTF is with shafting the greys from getting a PrC?
Oh, well. C'est la vie. Other than that gripe, KotOR 1 had
a more coherent final section
more engaging repartee among characters
more likeable characters (partially due to the fact that the sequel's characters were pretty much all either tightlipped or irritating)
none of that stupid "automatic queuing up of a standard attack despite the fact that I ordered my character to heal" bull crap
a final boss that didn't automatically save against everything that you could throw at him
KotOR 2 could have been a better game than the first. It was actually very close to attaining that goal. If they had provided advancement options for greys, finished the end section, not screwed up the last boss, not screwed with the combat UI, and made the characters a wee bit less emotionally incontinent, then the game would have topped the first.
*I played through both games the first time using my own moral and ethical compasses as guides. I still had more fun doing that than I did when I played through and got the four star treatment from the game by being an inflexible jerk.