I am a huge fan of fable 1 but, in the sequel they broke 3 major things that I just can't get over.
In this section I'll talk about things that ruined the game for me
1.The first thing that annoys me is that it's IMPOSSIBLE to die, when your health bar runs out your character is momentarily knocked on the ground, your health is regenerated, and you gain a scar that's it there is no failing. I miss the fable 1 days of actual challenge
2. To further the lack of difficulty you have unlimited manna, that's right if you're a mage then you can spam spells all day long, and if someone breaks your mighty magic then all you get is a scar. Also the spells are just as powerful as they used to be. I thought that the magic was balanced well in fable 1 now mages seem to be all powerful.
3. No armor, this one gets to me the most you can change clothes but nothing protects you from damage. I miss saving up money from quests (which you also can't do in fable 2 all you get is renown actual money is earned by doing tedious mini games) and buying all new gear.
The story
Warning this section contains SPOILERS
I thought the story was very uninspired look at the TimeLine of fable 1 and 2 you encounter balverines on the way to the arena in both games around the same time, you are thrown in prison almost in sync in both games. So far I've been nitpicking the story but one thing that really bothered me they traded an epic boss battle for irony.
Closing comments
I loved Fable 1 and had thought that fable 2 would be incredible but it just ruined my favorite things about Fable 1. I am being a bit overly critical for that reason if I hadn't played fable 1 then I'd give this game an 8. My advise rent it first don't expect anything to amazing.