I would not be so sure. Companies abandon great franchises all the time (see Bioware and the Baldur's Gate franchise for example). Still, I agree that LucasArts is unlikely to throw away the KOTOR franchise - the key word being franchise, not series. They will probably leverage it to create a MMO game. I really hope I am wrong on this one, but that seems to be the trend these days.
Sorry bad choice of words. But I completely agree with you. The real money is in MMO's these days and it would not surprise me to see them go in that direction. Sad part is no matter what the next Kotor game turns out to be I'll still buy it