Shutting oneself from the Force so one wouldn't feel the death on such a scale was perfectly sensible to me. The rest wasn't.
Just how does one become a "wound in the Force"? What does it even mean? How does it work? Makes no sense whatsoever. The Force is the energy of all living things. How do you "wound" it or remove your life force/energy from yourself?
"Wound" is merely a word. A way of describing it to other Jedi and Sith, it's meaning probably can't really be defined unless you are one. That said, the point of the plot was that Kreia was trying to KILL the Force (or at least, that's what she said, and if you play the game, you know better than to outright trust her), so the term "wound" has more meaning here.
Now, I assumed the masters were wrong about the Exile (him being a force leech and not having the force flowing trough him anymore), since it didn't make much sense. All of your companions grew stronger, not weaker, you could use force power without them and stuff like that. Made sense to me that you're connection with the Force was slowly returning.
But then you fight Nihilus who tries to "eat" you only to be overwhelmed by the nothigness. Seems like there is something to the whole wound theory.
He wasn't really a Force leech, but he formed connections and bonds with other people very easily, making himself, AND his companions more powerful in the process. But at the same time, they became his weakness, killing them could very easily hurt him, and it did at Malachor. He found a way, subconsciously, to cut himself off from his very troops and fellow Jedi before they died, and the rate was so rapid that it, along with the destruction of Malachor itself, created a massive reverberating echo in the Force that centered itself on him. This is the "wound" as best I can tell, a severe weakeness in the Force. This is what Kreia wanted to strike, to destroy the Force. In the end, she didn't.
I do agree that KOTOR2 was going in the right direction with the plot. I generally like it. But some things felt so...unnecessary.. and forced.
As you get nearer the end of KOTOR2, the plot breaks down because it was never really finished. This restoration project should fix most of the problems.
You could have very well made Darth Nihilus without the whole planet-devouring-endless-hunger bit. He would attack Telos to end the jedi. The flow of the game is the same, the plot a bit more sensible.
You could have had Darth Sion retreat, or the academy passage collapsing or something else to end the fight - instead you had him constantly regenerate and Kreia warning you that he's INVINCIBLE AND UNKILLABLE (yet mysteriously, he stops being so when you fight him again).
Which would miss the point. Nihilus and Sion were meant to represent what the Exile COULD have been, had he gone a different path. Failures, in Kreia's eyes.
And if you were paying attention to the last Sion battle, you TALK him into allowing himself to die. The fighting is just to keep the player interested.
Kreia could have taken out the Jedi MAsters in another way. Why not with the help of Sith Assasins? Why do they all need to die anyway? It's not needed for the plot to move forward anyway.
Kreia was PISSED. Killing them was out of anger more than anything else. And in any case "techniques from which there is no defense" was mentioned WELL in advance of this moment, so the fact that she could perform them shouldn't be a surprise. Hell, she did manage to hide her presense from at least one Master already by that point, so maybe she was more powerful and just life sucked the bastards. Didn't matter, she was angry, so she killed them.
As for Sith Assassins, she wasn't a Sith until after that moment, and she may not have been one then, so the Assassins wouldn't have followed her (and she didn't have access to them anyway).