Really, really sad, although as has been said, not terribly surprising.
Obsidian are such an underrated developer - KOTOR2 was much better than the original game, and could have been an order of magnitude better if LucasArts had allowed them more than a freaking year and a half of development time.
They could really have done this game justice, and an RPG is a fresh, original take on the franchise. As much as I'm looking forward to Rebellion's AvP3, we've already had plenty of shooters.