Star Wars seems pretty ''Fantasy'' to me. Just look at all the weird races that exist in the Star Wars universe. We even have genuine dragons and ''magic'' wielding swordsmen.
I think he is referring to the Sith as a dominating faction, not as Galactic rulers per se.
Think about it, the Sith were a joke around the time shortly before EP1, they were almost forgotten by the everyone, except the Jedi.
I don't -hate- the prequels, I still have alot of fond childhood memories about them (I am talking about Episode I primarily). I simply think the old movies are superior. If anything, the prequels retconned alot of lore for unnecessary reasons.
Voiced dialogue is cool and all, but I fear that this feature the game prides itself on will also be the biggest feature holding it back. With every major content they will need to hire and record voice actors. This will slow the production progress considerably.