DVD installs are just so much easier, so i would prefer that method over 4-5 CD's. my more preferable method would be a download service similar to Valve's Steam service. it takes a while to download, but then i never have to worry about putting in a DVD or CD into my drive unless i want to back up the cache files. and given that Kotor 3 is almost inevitably going to be SP only, there's no concerns with LAN parties.
just my two pennies.
See the struggle of the faithless lot as they negate their time
How low to sink to the depths of their frame of mind