Over at Gamasutra, they have details on commentary by Peter Molyneux during the London Games Summit. Speaking in the grandiose, pie-in-the-sky manner he's become known for, Mr. Molyneux described some experimental gameplay ideas
they're hoping might someday make it into Fable 2. From the article: "Elements of design that are changing from Fable's development to Fable 2's are what the players can purchase and own (wealth is likely to play a large part in Fable 2's characters); the responsiveness of and fantastical quality of combat (Fable 2 hopes to keep the combat more dramatic than realistic, but more responsive to objects and locations around the player); and the range of experience the player can have (Fable 2 is aiming to allow the main character to become pregnant, give birth, and raise a child)."
The leader of Lionhead Studios also spoke on the business side of indie game development, warning developers not to enter the 'spiral of doom'
: using payment from a contract for a new game to finish development of one already in production. From that article: "Another key point: 'Every game says something about your company', as it was noted: 'You're only as good as your last game' - the industry has a relatively short memory, and signing subsequent titles is vital to indie developers' livelihoods." Update: 10/05 21:43 GMT
: Whether or not it contains any of these experimental ideas, at least Microsoft now has its hands on some playable areas of Fable 2