I read this like Infiniti2000.
However, this feat does have some limitations:
1) In order to get the 5 foot step, you have to have not moved during your previous turn at all. This is fairly limiting, but it has the advantage of knowing when you can or cannot use it.
2) If used with Karmic Strike, it's not that big of a deal. First, you take a -4 to your AC to use Karmic Strike for an entire round. Second, it does not really prevent a full round attack. It prevents attacks after the first successful one. So, if the first attack misses and the second attack hits, it will prevent any potential third or later attacks if they exist. But, it does this at the expense of giving up the Karmic Strike AoO and taking a -4 penalty to AC. So, even if the opponent did have a third attack, you gave up an AoO at normal bonuses in order for the opponent to lose an attack at -6 (in this example). Pros and Cons. In any case, the only way to use this with Karmic Strike is to get hit first and to be at -4 AC.
3) You can only use this feat once per round. So if one opponent gives you an AoO and you 5 foot step away, You cannot do it again. If regardless of whether you have it with Karmic Strike, if you have used it once this round already, a second opponent can still hit you and if he is within 5 feet of you, he could get a full round attack against you.
4) Using this in place of Combat Reflexes is not that big of a deal either. If you go the Karmic Strike route, chances are that you already have Combat Reflexes. If you do not go that route, this feat is kind of weak since you do not control when oppoents give you AoOs, they do. So, the ability to move a little when you did not move on your previous turn IF an opponent gives you an AoO is fairly few and far between. By itself (i.e. without Karmic Strike), you'd be lucky to use Evasive Reflexes once per battle on average unless you have another way to force opponents to provoke AoOs (just like Combat Reflexes). My wife's Paladin has Combat Reflexes and she almost never uses it. I'll mention Karmic Strike to her.
All in all, this is a fun feat. But, it is not overly powerful. It is not even overly powerful with Karmic Strike since Karmic Strike is the powerful feat, this just allows you to use Karmic Strike offensively or defensively at the cost of four feats: Combat Expertise, Dodge, Evasive Reflexes, and Karmic Strike.