Yeah, the Force Unleashed 1/2 was one of the first events where things started going downhill for Lucasarts. I think the point I was trying to make earlier was that the mid-2000's Lucasarts games were great.
But yeah, considering they cancelled KOTOR3, Republic Commando 2 and the original Battlefront 3, they royally screwed themselves over. As you said, the players got crappy games like TFU and Kinect. KOTOR3 actually existed in pre-production at Obsidian for a time before it got pulled, as the article states below.
http://www.eurogamer.net/articles/2013-07-31-fear-is-the-path-to-the-dark-side
Never got to play Galaxies either, but there's a guy on Youtube who explored most of the planets' surfaces before the wipe occurred. Needless to say it looked interesting.