K1 left no room for a sequel. It was pretty well self contained. You only make sequels of games in which the original left room for a sequel to begin with. Like BG to BG 2.
If there is going to be a sequel I want to use my character from the first part to the next. If I was to design KotOR I would have designed it from the begining to be a trilogy, letting the player use the same main character from KotOR 1 to 2, to 3. I would also kept the maximum level at 20 and have the first game go from levels 1 to 8, 7 to 15 for the second game, and 14 to 20th for the last part.