Bloom lighting is an effect that I personally like...though I know that it's overdone...it just needs to be done RIGHT wich is a problem that all visual effects have (see: cell shading, normal mapping)
The kind of fairy tale world fable has is perfect for bloom lighting, i agree its over used in the industry (or at least not used properly) but fable is not one of the main abusers.
I swear to god I got blinded by the bloom of my characters bald head many times. At times I wasn't sure what colour hair my character had because the brightness coming off it was so intense.
I was just watching someone play Fable earlier today and commented on the bloom lighting to myself. Definitely overused.. and if not overused..well.. still annoying and unnecessary.