The art direction is stylized so it can run on low end computers as well as high end. Been stated multiple times.
The graphics style is due to making sure that as many people can play it as possible, along with just the huge amount of content in the game it would take way too long to make everything high detail.
The amount of the content in the game is several times more than KOTOR, more than they've actually said.
Let me Clarify what i mean by Art direction. Which is what we are talking about here.
The art department has created ships for the empire that look like imperial star destoryers.
They have created armor and weapons for the Republic troopers that look like equipment used by Clones.
These choices by the teame are clearly inspired by existing ships and tech in Star wars. my problem is that they look TOO much like clone troopers and star destoryes. things that don't exist yet.
Examples of art direction choices : Steampunk, cyberpunk, Gothic, etc.
What you guys are talking about is Art style.
Art STYLE is something else entirely. The Clone wars animated Series has a very specific style. Comic books have a very specific style. The cinematic intor to the game has a hyper- realistic art style. this is common practice for most games. The actual gameplay has a more cartoony, simplified art style. This was done for the reasons you suggested.
Examples of Art Style choices : Hyper-realistic, simplified, Cartoony, photorealistic, etc.
My implication about the art direction going in a similar direction to Clone wars, references the similarities in the following areas
Republic troopers who look like clones, fighting Sith forces who use Droid armies that resemble primitive versions of battle droids and destroyer droids.
To me, that speaks of an attempt to capitalize on the success of the animated series, possibly at the direction of lucasfilm.
Which, all things considered, is a very smart business decision.
(their armor even looked more advanced than the Clone Wars armor 
)
