Wow...all this backlash. You should also recall these are the people that made lionheart, IWD2, BG:DA, BG:DA2, and FO:BHoS (well, sort of with the last one).
I have high respect for them, don't get me wrong, but I'd rather see Bioware at the reins until we see what sort of stuff Obsidian puts out. Trust is good, trust with too much can be deadly. I test project (KOTOR2) would be something that one would want to see how one handles the ball before trusting them with your entire offense.
I know some will leap to their defense and say KOTOR2 will be awesome and that it's the greatest game...but in the industry you never know until the game is actually out what it will really be like. Obsidian is basically Black Isle reformed, but even so they are still finding out how they will handle this new way of being together and this new item of how to handle items without Interplay. I'd personally like to see what they do with the ball before turning a lot more over to them. By the time they finish KOTOR2 and we see the results, it is likely they'll be hip deep into NWN2, which would make it if they create a fiasco out of KOTOR2 (which I think is unlikely, but one can never tell) a lot harder to give NWN2 to someone else.
I understand WHY it was done, perhaps Bioware had additional pressure from Atari (plus bad experience working with Atari from NWN and Atari's messing with the game via CD protections and other inane items), but also they have a full slate themselves currently, but I'd still have liked to see the Ball in Bioware's court until we see what quality of stuff Obsidian puts out.