Fable felt like more Fable, but a little simplified. I played a caster, and instead of scrolling through spells to find the one I want, or hotkeying favorites, I had to hold the x button till the magic meter thing filled up to reach the level of the spell I wanted to cast. Which was ... easy, but a little lame. It's rather simplified gameplay to begin with (which is not inherently bad, btw), but they seemed to have simplified it even more.
I did get sad when my doggie got hurt and was limping around the screen, but there was nothing I could do for him. It was very pitiful.
The breadcrumb thing didn't feel too intrusive. If you sometimes don't pay very close attention, um, kind of like me, it's not always super apparent. I did ask if there was a way to turn it off, and honestly, I don't think he answered. Did he, Russ?
If you liked the first Fable, you'll likely enjoy this one. It feels the same, a little button mashy, but certainly very pretty, and has a quirky sense of style/humor/pace. If you didn't, especially because of the simplicity, you'll dislike this one.