From the thread ages ago it mentioned a MMO aspect. I do wonder if they don't build one massive MMO world, have a single player portion of the game, essentially Kotor 3, then have the same world, probably some area's added to every section and have the follow up story to the single player as the start of the MMO.
Basically, WoW would be fairly difficult as it doesn't really have a main story line you follow throughout the game, just a background horde vs alliance war that you don't really partake in the story. But Lotro, single player, scaled bad guys, it could easily be made into a single player game, and follow an alternate story line to the one in the game and the film but still be based on the same world.
THe time to implement an engine and design a world is massive, quests and story line can be made quite easily. IN the case of Lotro, changing the health on enemies and adding in a new main storyline to follow would be pretty damn simple as everythings there and ready for it to be done.
I think if Kotor 3 worked that way it could be immense, Kotor 1/2 were just brilliant in terms of story, playing a decent sequal would be great and being able to continue playing a follow up story as an MMO would be pretty damn good aswell.