Well, that time period in the Star Wars Universe does seem to make more sense as an MMO than Star Wars Galaxies, considering there were an abundance of Jedi and Sith. SWG could never really stick to the true roots of the SWU given the number of Jedi running around getting whacked by Bounty Hunters and gangs of tamed Rancors.
(Assuming these rumors are true...)
So, in this iteration you get to pick what type of Jedi you want to be (Rouge Jedi, Paladin Jedi, Hunter Jedi, Shaman Sith, etc. etc.), instead of having to either learn every profession to unlock a 'force sensitive' slot, or wait until Sony gets enough whiny fanboy emails to finally make 'Jedi' a class. Not sure which is worse...
Regardless, I could care less if Lucas Arts wants to create another MMO, and I could care less if it's in the same time period as KOTOR. It won't BE KOTOR. It'll be what Episode 1 was to Episodes 4-6. An abomination. The only thing Lucas did wrong was to make Episodes 2 and 3. Luckily, if this MMO fails, they might think twice next time.
Since we don't have a real KOTOR 2 (the actual sequel was, IMO, sort of like KOTOR 0.7b) now, not having one released this year is status quo.
Until they announce a polished KOTOR 3 (or a new Tie Fighter Game), in the style that made it so wonderfully entertaining, as a first person, 40+ hour RPG/Action/Adventure game, I'm not getting my hopes up that Lucas Arts is going to develop or publish anything worth playing.