beating Castrum and making this thread... XD
any ways fable 3 has been announced... its Focus is on "power" now (Fable 1 was one of many heroes, Fable 2 you were one of the last heroes left, Fable 3 you rule over Albion). That old witch lady is back, saying how Albion needs a ruler. Choices affect all of Albion, not just your own experience (might need some clarification). Think a mix of Black & White and Fable. Advisors/spouse push you in different directions. You don't start off as the ruler; you work your way there.
You start as the son/daughter of your Fable 2 save. Albion's ruled by a tyrant; your job is to start a revolution. Even after taking the throne, you'll still have to fight and gain support. In-depth strategy (where to allocate Gold, support for certain communities, building up forces in certain regions, etc.). Bowerstone has poor districts now. More areas to explore in Fable 3 (i.e. there's more of Albion than what was in Fable 2). Some characters from Fable 2 will be in Fable 3.
They've done all the story and voice-work already, to try and see if they can build a better story that way (rather than build gameplay elements first and shoehorn in the story stuff at the end). Story branches, like Mass Effect. "Judgments" = new gameplay element; you enact decrees/orders for someone to die, someone to be rewarded, etc. These people will confront you in your throne room or out in the game world to defend themselves (verbally and/or physically). These Judgments can be small or big (small ex. a girl steals an apple from a vendor, big ex. go to war). Think of it as sidequests.
Your dude/chick can meet someone and will have the choice to shake their hand in greeting or not. This will eventually develop into closer relationship gestuires (hugs, etc.). More emphasis now on feeling/touch (ex. cuddling your infant), instead of just "Press A to comfort".
Release date: 2010 (mid to late 2010). More details later today.