Also you can have a dog in the game, which acts as your map at times, sounds corny but I've seen videos and it looks alright.
The most exciting thing to me is the 'Dynamic Regions' feature. Remember random trading camps in Fable 1? Well theres more and they're all around in Fable 2. But its great because if you kill everyone in the camp, in 10-15 years it will be gone and grass will have grown over it and it will blend witht the nature around it. But if you trade with it lots and lots you go back in 10 or 15 years you will notice it has turned into a thriving town. This feature alone is what excites me for Fable, and of course the weapons. Oh, and you can get guns in Fable 2, its set in pioneer days, but theirs still magic and swords and whatnot.