It shows even if you tried to set the galaxy right, in the first game things dont always work out the way you planned. The two games together are a master piece of story telling to me.
Number 1 is like a typical star wars game, good vs evil, but 2 just makes every thing more complete and complicated in a good way. The story is a lot darker and grim than kotor 1 with way more shades of grey. I love how you can upgrade most of your party to jedi status. I played a jedi but usually had HK-47 and Mira with me. I liked those sections though bc it made you connect with the characters you didnt always choose to take out with you. the only parts that are hard is when the game splits your party up, and makes you use either one of your party members or just a few of them. The game is fun to play but is very very easy. I bought kotor 2 a couple months back, and finally beat it yesterday with a little over 40 hrs put into it and I loved it. full disclosure I have played Kotor 1 at least 3 times all the way through. Like you dundradal, never played kotor 2 before, but like you, I got it after the update and when it was on sale for like 3 dollars.