KoT:
You've obviously lost me somewhere.
Like I mentioned in my earlier reply, I think the Obsidian's writers far surpassed with Bioware managed to do with KOTOR.
KOTOR, the storyline was decent, but...It never really seemed that the PC's actions had much of an impact on the world outside of himself. In addition to which, character development and progression of the NPCs was pretty much non-existant. For instance, the redemption of Juhani in KOTOR took place over what, three or four lines of dialogue in the middle of the duel on Dantooine? Even the outcome of the murder trial mid-game was disconnected from any lasting effect on the plot..
But the worst offenders in KOTOR were the NPCs. Each was pretty flat and lifeless. You had the mandatory scoundrel/smuggler/Han Solo (Carth), the wise-cracking droid, the tormented Jedi, etc. None of them really were developed beyond their archetypes.
In contrast, KOTOR 2's NPCs were extremely fleshed-out. They all had their own stories to tell and their own rounded personalities which were developed and explored over the course of the game. They were believable as people with that bit of "larger than life" quality that made them interesting. They existed as separate individuals, rather than simply as combat support.
A great example is travelling around Nar Shadda with the Handmaiden. Rather than simply trailing along, she's involved in what's going on. Her character develops through her questioning the player's motives in doing what they do and wanting to understand. You can see her grow from the sheltered innocent she is when you pick her up from Telos to a more mature and world-wise character by late game.
Sure, it's a subtle thing, but it's subtle touches that make good stories great stories, and interesting characters believable characters.
If only Obsidian's programmers had done half as well as their writers did, KOTOR 2 would've been a lock for Game of the Year for 2005.