I dont see why you would have to scrap KOTOR III anymore than they would have had to scrap FF II because it had nothing to do with FFI or perhaps a better example FFXII because it had nothing to do with FX and X-2 (confusing aint it:D)
Knight of the old Republic implies two things. Knights (IE Jedi) and the the old republic. Beyond that it dosnt say the story of Revan, then Exile, or anything else.
If KOTOR Is going to get into the X's then it needs to identify as its itself, not with specific characters.
Unfortunately you cant do a trilogy on a computer in quite the same was as you can with a movie. A three year old game is going to look dated.