I say let em make it! But tell a new story in a different time. Say 2000-3000 years after KOTOR. That way it won't overlap anything in TOR timeline.
First, it wouldn't be KOTOR if it was set so late that there was no relation to KOTOR I/II storylines.
Second, I don't see why they should worry about stepping on Bioware's toes. It's not like Bioware givesadam about storyline development, after all - an entire expansion
is going to be released without so much as a sliver of story development, and we're never going to get any more character storylines either.