Well if Team Gizka ever finishes the Sith Lords Restoration Project then KOTOR2 won't be the abomination you describe. Supposedly the reason it was so bad was at the end when Obsidian was under pressure from the publisher to finish the game. The SLRP is using a lot of the content in the CD/DVD that was put on the discs but never actually used in the game.
Since their last update was on October 22nd 2007, I find that higly unlikely. Besides, it wasn't just the missing content, the game was bug-ridden as hell.
One of the worst bugs in every sence, was the racing jump bug. If you ever jumped across the finish line in a race, then in every subsequent race for the rest of the game, your car would simply float to the ceiling immediately when the race started, with no possibility of getting down. This meant that you couldn't get any of the speed pads, and was thus unable to ever win a race again. The jump was obviously implemented as a gravity flip, and some idiot programmer made sure that the gravity was flipped back to normal at the end of a jump, but not anywhere else. It would have been such an easy bug to fix, but did they fix it? No. Here's a page with some of the bugs people have encountered.
I think the problem with that game being so buggy was the combination of the demand by consumers for the game and the demand by the publisher to profit from the game. If Obsidian had more time or resources or whatever else required to make the game run well then we wouldn't even be talking about the game being a bug-ridden product.
Personally, I think KOTOR2 could be used as a good lesson to gamers, developers, and publishers alike. It would teach patience to the gamers and publishers and efficieint time management by the developers. Of course I could be wrong but I'm sure there is a lesson hidden somewhere within the fiasco that was KOTOR2.