Fable 2 still pretty fun nonetheless. you should give it a go (especially since its only $20 or so now). its not going to blow you away with some awesome story or deep gameplay, but you can certainly do worse things with your money.
as for Fable 3, i'm looking forward to it. they keep putting the focus into making your interactions with the general public more and more dynamic, and that's pretty cool. hopefully they'll have a deeper (and better) story to go with it. oh, and it would be nice if they could go back to a skill system more like the first game so that you could have more of a choice about what kind of a character you have (melee, ranged, or spellcaster).
See the struggle of the faithless lot as they negate their time
How low to sink to the depths of their frame of mind