Both Varsity Puppet and Sith Holocron wanted to know what the community would think. So, here it is. Can't say I didn't expect the outcome.
True, backwards compatibility isn't guaranteed. But personally, I think having bugs fixed is more important than being compatible with new stuff. After all, people still mod, so updates of the most popular stuff will still be done. It's not like it's a dead community and we only have older stuff to select from which is then made unavailable.
When the choice is the HK-Torture cutscene/Goto-Bao Dur/Bao Dur Jedi Training on the EH or not just to support mods that, say, add a container on the EH, the choice is quickly made. Most older modifications don't break stuff, they just unfix things we fixed since their creation. Of course there are several who do though... just because one modified file can have such impact along the way...
I don't really see where it's a minefield for new mods. As long as they use 1.8 stuff as base, rather than vanilla TSL, they should just be fine. Using, say, a vanilla k_003ebo_onenter however will make your mod guaranteed unusable along with TSLRCM.
It's the same as modding the original TSL, but instead using different files (most of the time) as base. Made even easier if using 1.8's non-mod installation (english only), since then there are no multiple files over multiple modules to check with KOTORTool or the ERF-Extractor, what you see is what you get and what's compatible with TSLRCM 1.8 (although not guaranteed with other modifications of course).
Keeping it compact just adds a whole new layer of issues. Then the additional fixes would have to be made seperately. Using a seperate installer. Compatible with AND without each other. Dumping stuff in override is asking for trouble, since many files have similar names in other modules, but highly different content (see also crash issues using n_darthnihilu001.ncs to make that fight on the Ravager harder for example). Even worse with .dlg files. It might be possible if TSLPatcher allowed inserting files into modules, but it doesn't. Override (problematic) or replacing entire modulefiles (problematic, and highly incompatible). If you want to make it compatible you need a module per permutation. So say, 5 fixes (only minigame modules have that LOW amount of fixes) needs 5x4 = 20(!) module files. And do note that some modules have over 50 modified files! Also explaining why we don't allow you to pick and select fixes.
So making it fewer smaller packages instead of one bigger just makes it less userfriendly, less compatible with other mods and giganticly prone to error. Not exactly a step forward.
Making one big package post installing just vanilla 1.0b KOTOR2, and then having people add mods to that, having that be the new base that KOTOR2 vanilla once was, is a lot easier for both user and modder, than having to deal with a possible TSLRCM, fixmod, other fixes etc. etc. before even using their own mod they intend to make...
If anything's still unclear, just ask...