A point I have made in the SW area several times (along with my opinion that I don't actually think they really have a plotline for KOTOR III so it will never happen) is that 'Galaxies' was a fundamentally rubbish setting for an MMO. The Civil War is no good for a standard MMO experience because both sides, plot wise, are totally imbalanced; it is a guerilla war, mostly, and you just cannot represent that in the crafting/levelling/social world of an MMO without getting it entirely wrong. And what happened? Well... they DID get it entirely wrong, didn't they? The setting is absolutely nothing like Star Wars, and that's before we even get started on the Jedi debacle, and that's before we even get started on the gameplay issues.
Now, a KOTOR-set (roughly) game is a MUCH better idea. There you can have a balanced set-up from the off- strong 'empires' on both sides, lots of Jedi, lots of Sith, lots of freedom. It's a much more sensible setting.
Not that I will be playing- because a. monthly fees put me off immensly, b. it will be ruined by other people playing noble Jedi like Leiasucksme785 and c. I'll lay you any odds that their interpretation of Lihgt Side/Dark Side, the Force and morality in SW will piss me off.
But all that aside, it's a winning idea and it will be far more popular than the reaction in, say, the Star Wars EU section has made it out to be. Frankly, I reckon not many people will care about a KOTOR III before long.