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I don't think the series is over rated.  I never played Fable 1 (so ashamed) but Fable 2 and 3 became nothing short of addictions to me.  The games really suck me in.  It's just that there are certain things I think F2 did better than F3.  I guess a good analogy would be comparing Street Fighter ll to Street Fighter lll.

Oh, and I wish both games would have included more diverse wildlife, enemies, and a few horses wandering around.  It would have helped create a more believeable world.