It's kind've seemed like the Fable series was on a downward slope for a while, now. But honestly, for all their innovation, games like The Movies and Black and White have seemed like they had a lot of difficulty with the mechanics of being games, of making it clear to the player what they needed to do to succeed and not making those goals clash with the more "sandbox/playroom" elements, where the games find the most innovation.
I wish Molyneux the best, and I really wonder what kind of identity Lionhead has without him, but I'll be waiting for proof that Peter's creativity can be channeled into making something that can be reviewed without the reviewer having to throw in a whole bunch of caveats.