Concerning Characterization: The story writers for the Fable games should simply read the Discworld novels and take notes from the characerization of Lord Vetinari.
Concerning Peter Molyneux: This man is the avatar of over-hype, essentially the less nerdy version of 1980s and 90s Richard Garriott. But while Lord British actually MADE GOOD GAMES* (until around Ultima IX), Molyneux tries too hard to please too many people in the process of developing the game. It's always the same thing: He presents an awesome idea where you think "you know, it might just work", but over the course of development it gets less and less magical and more profane. Same thing happened to Spore and probably to Civ 5 because they went for mass appeal, for action adventure instead of simulation in Fable's case. If they ever make a personal-level Kingdom management game with a detailed world, moral choices and a revolution to lead, heck, I'll buy six million copies.
Right now, though, I think Maxis and The Sims Medieval is closer to achieving what Molyneux promised for Fable 3 than Lionhead.
Also, handholding. How did anyone believe that was a key selling point? I had Fable fans biting my ears off when I even so much as dared questioning that idea's brilliance.
Concerning XBOX-Fanboys: Hey, I have an XBOX, it's my primary game system after my PC. I like neither Halo nor Fable. Actually, I like strategy games, simulations and RPGs. Am I a bad XBOX-Owner?
Concerning this Review: Best thing in a while. When it came to the point about morality, I was literally hurting from laughing too hard.
* - interestingly, the article that introduced me to the Escapist was called "The Conquest of Origin", about the Origin takeover by EA. Interesting read, I sill recommend it if you can find it in the archives.