Those I've talked to say it crashes often, and I've experienced it first hand. Frames drop severely on a certain agricultural planet. Cutscenes skip, cameras appear in heads, textures disappear and there are spelling errors. When an NPC spoke about "Bastilla," I found it a pretty glaring mistake. One 'l', not two. KotOR1 had its crashes, but nowhere near as much as KotOR2.
Indeed, LucasArts rushed Obsidian, and no doubt they seemed eager to please LA too. Another month of beta testing would not have hurt at all, nor would it have hurt for LA to supply a few more testers if they wanted it out so quickly.
Oh, and whoever posted up the review scores for KotOR2; sure, they're good scores, but the content and story are good enough -- once you're past the first two regions -- to keep the score up, despite the large number of bugs.
The least LA or Obsidian could do would be to patch the game quick-smart, and/or release that extra content that they supposedly dropped.