Hello galneon, welcome to the forums and thank you for your interesting comment and question.
"Holy shit, it's the sequel to Warriors of the Eternal Sun I once had a dream about when I was 12,"
I'm glad you had that thought. It is true that Warriors of the Eternal Sun has influenced KotC 1 heavily. Another rather similar game is the GBA version of Eye of the Beholder, which I'm planning to play through when I get a bit of time.
the re-branding of what was to be KotC2 and the mention of small modules here, am I to believe that this is more of a platform to deploy episodes (and eventually perhaps a community campaign editor?) than a cohesive, overarching game?
It will be called KotC 2. It is true that I'm focusing on creating a platform for the deployment of modules. In fact, that platform already exists now, it's just that it's missing the combat engine. I'm working hard on combat-engine development. Thinking to do a proper update once the game supports melee attacks, charge attack and ranged attacks by the player.
I would like to do a cohesive campaign but it will probably be split up into a number of modules, such as one module that goes from level 1 to level 6, one that goes from 6 to 12 and one that goes from 12 to 18. The game supports loading into a new module a saved game from the previous module in the chain.
Look at Age of Decadence, for example. It's a hugely ambitious game, an entire fantasy world with several cities, tonnes of quests and dialogues, but look how long it is taking to develop. Maybe, it could have been made as a chain of modules. Ideally, once the platform is completed, I want to be able to say things like 'my next game will be taking x months to develop' and not 'x years'. I also have huge hopes for what could be achieved as a community.