I haven't picked up Fable 2 yet (it's been on my list for a while, but I opted for Bioshock 1 and Mass Effect 1 last time I had spending money), but I did like the first game. I think it was largely because the only bit of hype that reached my ears came through a friend of mine (who tried to sell it as the electric messiah, which really only served to make me skeptical) and not from the PR machine.
I'm interested in Fable 3 and all of this talk about touch and genitalia got me thinking. What if they made it so that you could choose where and how to touch people? I'm thinking this would work best with a mouse, honestly. Anyway, I'd probably spend more time running around town griefing and flipping up skirts than actually killing stuff. The way I'm hearing it, though, this really seems more like you get a single context-sensitive button and you can only perform one or two actions with each person. Not really ground-breaking stuff...
Edit: Okay, so, imagine this. You walk up to a nameless NPC (let's say a hobo, since they seem to like that example) an press the context-sensitive X button. That freezes time and gives you a full-frontal view of the stinky hobo. The left analog stick and trigger buttons let you flip the guy around and zoom so you can view him from whatever angle you feel like (kind of like a character creation screen) and the right stick moves a cursor so that you can point at different parts of his body. Pressing the right bumper brings up a menu of actions specific to each body part. So, let's run through it. You walk up to the hobo, press X, and move the cursor to his left hand and press RB. The menu pops up and you see that you have the option to shake his hand, grab his wrist and twist it, break a finger, grab his hand so you can lead him to the pub which happens to be where you're meeting your slaver contact to sell him some new merchandise, etc. Additionally, while you've got a choice on the menu list highlighted, you can press X to open a second menu that lets you map that action to your D-pad. So instead of going through all that trouble, you can walk up to the hobo and press Left to punch him in the junk or Up to give him a hug or Down to spit on him for being poor.