I'd rather have a new game with the old graphics, but I'll take that.
As long as they manage to hold back on "improving" the actual gameplay I'm down for this as changing the gameplay of a classic is always risky and more likey than not controversial.
That said I'd love, love, love a "fixed version" of KotOR2 with improved graphics (as in, with the cut content put back in so the ending at least makes some semblance of sense).
Well there is a fan-mod "fixed version" with the old graphics - Just in case you had missed it: http://www.moddb.com/mods/the-sith-lords-restored-content-mod-tslrcm/