I protest, I protest, I protest. Fable did not have a horrible menu and inventory system. Fable had what is, in my opinion, the best menu and inventory system I experienced before Oblivion, and it flowed almost seemlessly into gameplay. Fable 2, on the other hand, fucked it up with one of the most cracked ideas ever, which was to only allow you to drink or eat one thing at a time in the menu, after which it kicked you back to the game.
As for Fable 3's graphical representation system, it's a neat idea who's time has passed. Quite simply, what I need from an inventory system isn't "connection," or aesthetic. What I need is an efficient system that allows me to select and use items quickly and easily with a minimum of time spent or frustration encountered. Fable 1 succeeded at this marvelously, and Fable 2 failed, and the graphical system will probably fail as well.
Here's the limit. If I cannot, after some experience with the inventory system, access my inventory, locate the item (just one) that I want, and be out of the system in less than 15 seconds, then it fails the efficiency test. This is what I want out of a menu system. I don't want interactivity, that's what I do when I'm actually playing the game!