I'm curious as to Fable II's narrative. Is it better than the first and does it stand up to linear story lines in its dynamism and scale? Having read the Gamasutra interview with Molyneux, it seems like a lot more effort was put into creating a compelling story, but what's the consensus here?
Linear storylines generally provide more excitement because the increased authorial control over the narrative allows for a more gripping plot and more interesting characters. Is Fable II's story what you would call "gripping"?
I think the main story in an open RPG like this is always difficult to build, if you make it too gripping you end up with a game like Mass Effect that funnels you through quite a linear path because the main story is the only thing worth caring about. And if you leave it too open you get a game like Fallout where the ending is ultimately a disappointment because you've never engaged with the story.
Fable 2 hits the middle ground between the two very well imo, the game creates several compelling characters (notably the dog, but also the other three heroes), gives them solid roles and motivations and sets you off on a journey with twists and turns you wont see coming. It's not so gripping that your attention can't wander onto the side quests or the demon doors or just plain exploring, but it's interesting enough that you never feel like going back to it is a chore (I know Fallout felt this way to me at certain points).
Like most parts of the game, I think it hits a sweet spot.