I never heard ki-o-tee instead of ki-ote until I was old enough to see a cowboy actor on tv saying it that way. I thought it was a mistake, that actors didn't know how to pronounce it.
I was looking for a map online yesterday that may show the regional pronunciation.
It seems like Canada, northern rockies and the midwest say KI-ote and California, the south and the east coast say ki-O-tee.