Can't you change these settings in game? Bittech mentioned some/most of the settings need a restart to take effect, is that basically what's missing here, you've set certain settings and they haven't taken effect yet?
Either way, it does sound like its broken, bit tech seems to think it looks pretty good graphically.
Either way, its a great story, there are slower story parts, you know the parts that make truly great games good. If you only like shoot 'em ups and "pick up and play" console games theres no reason you would particularly like the game.
Either way, a working copy, and a known final copy is generally thought to be the best thing to make final comments on. For instance Assasins creed the leaked version crashed like a mofo, constantly, for almost everyone, but final game never crashed a single time for me and most people had FAR fewer problems.
Unfortunately it probably won't lose its console feel, but then again, so what, thats how many games are. The game isn't great on the 360 because of gameplay, although its good, its great because of the story, timing, idea's and design of the major area's, this doesn't change no matter the controls.
I've yet to try it, might not bother, it was 3-4 years between my replays of Kotor, can't see the point in playing time and time again and doesn't seem worth paying for twice, what game is. i simply can't imagine any mouse controlled aiming to ever be worse than console control, so if its not worse, meh.