An allagory will make you better understand the combat system
Have you ever played any of Age of Empires (its an RTS)? If you haven't there are different building where you can produce units or enhance them, for instance, The Dock has several different types of Warships, one of these is a Fireship and every time you advance a level in the game (called ages) you are given an option to advance the Fireship (so it becomes stronger, faster, etc), when you pay a certain amount of gold, wood or both, all of the Fireships turn into Fast Fireships, making them stronger and faster. You see an enemy ship you send your Fast Fireship after the enemy ship, the two ships meet in battle, you have no control over how your Fast Fireship is going to attack him, you have to rely on the enhancement you have given it to beat the Enemy, but if the enemy ship has better enhancements you will have a lesser chance of winning, unless of course, he has a slow attack ship, and you have a fast attack ship, which even though the Enemy ship has stronger firepower your ship is fast and quick, making the Enemy ship very easy to kill.
Basically the human jedi in Kotor is the Fireship, but he must learn his enhancements not just buy them, and the Enemy ship is a Bounty Hunter (with loads of weaponry), but yet you are just a padawan learner but still can dodge, block, and kill the heavenly armed Bounty Hunter, though the killing of the Bounty Hunter may be long and tiredsome you can still beat him, and when you get more enhancements the killing of a heavily armed Bounty Hunter will be even easier and quicker as you enhance you skill over time.
I hope that helps Hooded-Jedi to better understand the Combat system