Oh, Peter, you never learn. You need to pick one of two things, my man.
1. Moral ambiguity. Do it to it. Eighty-six the whole good/evil thing and try some ambiguity.
2. If that doesn't seem to fit with Fable, fear not. Gamers are not as adverse to simple good/evil/neutral choices as they first appear, and with a more comedic-oriented game like Fable you need to exacerbate this to the level of almost-parody. However, you have to take away situations of moral ambiguity as well.
You can't have both, otherwise you impale yourself hopping the fence. Just pick one, man