Lol, I think there's likely definitely a rivalry between BioWare and Obsidian, but perhaps not that much.
I wonder if the fools at bioware even played Kotor 2. I doubt it, they probably view playing it as blasphemy, I mean, judging from how they have tried to portray kreia, they probability even refused to read the wookiepedia article.
Still, KOTOR is a very different game to KOTOR 2, its very much traditional while Obsidian attempted to explore more controversial, radical themes - and I'm not convinced BioWare understand that and are properly portraying it in their works. Drew's Revan for example completely bypassed the broken, morally destitute condition of the Jedi and the Republic after the Jedi Civil War which really did have an ominous shadow hanging over it.
And now I feel they are attempting to simplify and categorize Kreia's character, it can't be done BioWare, even Obsidian couldn't do it! Kreia is a work of art, she cannot be contained!
...hopefully this 'entity' will not be explored and we can pretend she is someone else.