I just finished playing through it. I did alot of the side quest stuff (alot of it I should have skipped) and just completed the main storyline.
I was very disappointed, and I was not even affected by the Molyneaux hype as I was for the first Fable. I understood going into it that it wasn't a "serious" RPG/action game.
It looked nice with some graphical glitches here and there.
The combat wasn't horrible but very simplistic.
The interactions were laughable and became stale very quickly. Sadly, they were made necessary.
The scripting/writing was one of the worst things about the game. Some of the things people said were just awkward.
I could go on all day about what I did and didn't like, but I'll sum it up like this:
It looked like an ocean, but was only a foot deep at it's deepest point.

A decent waste of time, but that's it.