After reading the article:
http://www.gamebanshee.com/interview...lackhound1.php
I'm actually happy this didn't become BG3. The storyline doesn't seem so grand...unless she turns out to be a Bhaalspawn (and that might be lame too).
I noticed Josh Sawyer thinks Atari currently own the rights to another BG titled game. They could possibly make a decent go at this. ToEE sucked big time with regard to quality and story but the engine seemed sound and the artwork acceptable.