Horrendous disgrace indeed, Jaymen. Not just the whole canon thing, but they turned Revan and the Exile into complete pussies.
I like the idea of a story taking place a couple years after Knights II. Run with the whole Sith fighting against each other idea, but instead of killing off the Exile cheaply and having Revan being stuck as a prisoner for 300 years, make the new PC someone who goes to the unknown regions and helps Revan and the Exile defeat the emperors forces. Allow the player to customise the gender, alignment and appearance of Revan and the Exile and it'd be sweet.