Although I'm disappointed they went the MMO route. I actually have a bit of hope left for a KotOR III since the MMO is supposed to be set 350 years after the events of KotOR. As long as they don't do much to fill in that 350 years, there's a little hope!
Very little hope. Look at what happened with Blizzard after WoW was a success... they dropped any plans to make Warcraft 4. Sure they say they are open to making one someday, if some other studio shows interest in doing it...maybe. However, as long as WoW continues to rake in the cash, they won't seriously consider dedicating any resources to anything Warcraft related but WoW. If the same were to happen with TOR, it could be years before we get KotOR 3, if ever. If TOR fails, then the odds get even lower, since LucasArts is considering TOR the next step in the franchise. If TOR fails, then the franchise has failed and we will probably never get KotOR 3.