Hmm… This announcement reminded me of a beta of a story conversion mod I played in Kotor 2 a year or two ago called "Revenge of Revan" that was to act as a fan sequel of sorts (I don't think it's based on any of the initial KOTOR 3 pitches, more of a fan project). Said beta was actually quite enjoyable and done to a high quality (it even added support to define choices made in TSLRCM), but having checked back on it now, I still see that development hasn't really progressed since I played it.
There is also another KOTOR 3 fan project called "Jedi Masters" which is still in beta. I can't say from personal experience if this particular mod any good or not as I never played the beta for it (I'm intending to, now that this news story has reminded me of it) but initial impressions has it look quite impressive.
Now to get back on topic, It's interesting seeing some of the "what-could-have-been story designs for the canceled KOTOR 3". As for the project itself, it will be interesting to see how/if it will progress.