I mostly agree here with DeathScepter. Kreia sees the Force as a balancing thing that heavily influences (or may even compel) it's 'users' towards one or another mindset or course of action beyond their 'normal' stand or reasoning, and given the final word on all things starwars, that is, the movies, i completely agree: just look at the super magical, snap-of-the fingers (retarded) way in which anakin turns to the dark side (yes, we were told the dark side twists your mind and all that jazz but does it have to do it in such a quick, unreal fashion? but nevertheless it does), and also look at the way the jedi council members behaved; generally trying to decipher things looking for signs in the force instead of physically moving their asses 'into the fire' to find the truth of things (inaction), arrogant (for instance, the way they dumbly dissmised Qui-gon's reporting that they encountered a sith on Tattooine, i mean, the man is an experienced jedi master and they simply dismissed this info as the paranoid ravings of a frightened noob or something), and generally oblivious to the real flesh and blood motivations/desires/intent of real flesh and blood people, even people they constantly came in contact with (and including their own members) until it was too late to do anything about it. So, yes, according to the movies, and both kotor games, the force, in either edge of the spectrum (light or dark, well, not much of a spectrum that, let's call it 'sides of the coin') limits (or reduces) the free will of it's 'users'.
Now, Kreia knows this, and sees the Exile in his/her condition as one who is 'neither jedi nor sith' but, as the death of the 'will' of the force, as someone who can use the force and not be 'coerced' by it's 'will', a true master and commander of the force, which is why she calls the Exile beautiful and tells him/her that what he/she learned (became) must never be forgotten, etc.
As for the 'death of the force' thing, given Kreia's final dialogue, the scene with the jedi masters, and Visas's story about her world and Nihilus, i don't think it's meant in the sense of actually killing the force itself, but rather it's 'will', it's coercive influence on it's 'users' (be them light or dark), and the way to do that was to force all force sensitives everywhere to either die from the echo or willfully (and completely) 'deaf' themselves to 'hearing' the force (and thereby becoming 'wounds' in the force like the Exile).
Given Malachor V (a planet) as the source and enough range (galactic) she could make sure it reached all force sensitives (even new ones) for ages to come, but the price would probably be countless lives as it is hinted that most would not survive (which is why you get a chance to stop her and also destroy Malachor V itself).
But anyway, all this (even without taking into account her personal motivations and story) just goes to show how infinitely superior Kreia and the story of TSL is compared to your typical cliched two-bit carboard 'Bwuahaha' mustache-twitching villain and generic 2 dimensional stories that plague most of starwars things.