Yeah.. I didnt notice a huge difference (if any?) and KOTOR 2 kinda presented -why- there was a level cap in the original. Since my character was like a god by the end of KOTOR 2. Even though it was still fun and maybe only slightly challenging.. The developers wanted the end of the original to be a real fight for your life endgame. And they seemed to think level 20 was the way to achieve that. You're strong enough to survive almost anything with some decent strategy or lots of items. But not so strong you can kill anything in three attacks