Well, I'm not saying Obsidian (nor Lucas Arts nor Bioware) used her like that. I suppose some people here think I was saying that. I'm just saying that you could make it fit for fun. It would only be something for people who like Bastila in Kotor1. Certainly not for everyone.
As for Kriea knowing the exile's identity, Kriea is a mystery in herself. Maybe she does know the exile and her battle meditation. Kriea seems to only reveal what she finds worth revealing. Maybe she knows more about the exile than the exile would think... and she wouldn't want to reveal that she had such extra knowledge unless it served her own purposes. Sometimes it is to great advantage to know something about a person, while that person is not aware that you possess such knowledge.
Kriea isn't a problem, HK-47 isn't a problem (as he always loses his memory), I can't remember any problems with T3-M4.
Mandalore conversations bothered me some though...but it might not be irredeemable. I suppose Mandalore wanted to "start over" with Bastila, test her as well, maybe while hoping that she wouldn't recognize him, at least at first. He was unusually friendly and hospitable to her party. Anyways, I'd have to run through those conversations again, maybe it wasn't so bad after all.
Another random thought, in Kotor1, Bastila and her meditation was sort of a secret weapon. There was no indication to my knowledge that she was famous. In KOTOR1, did anyone really know her besides Carth, the council, her mother, and those who ended up dead (Malak and his Sith)? She wasn't the talk of bounty hunters (Initially Nord and Davik didn't know about her). With her Battle Mediation, she would be worth a huge bounty. Maybe Malak's mistake was that he didn't issue a public bounty on her.
If the common folk of the galaxy knew about her, they would know that Malak would want her.