So not so soon after
Xbox Microsoft Developer Direct, there was a interview done with the Fable devs. One section has caught the attention of many.
IGN interviews Playground Games' founder and general manager, Ralph Fulton, on Microsoft's upcoming Fable reboot.
www.ign.com
In other words, you won't see a halo or horns growing.
I mean I guess what they are saying is technically true, but I feel it could've been done so that only we, the players, see the changes in appearance. Then again, it might be weird to see none of the NPCs comment on your appearance.