The story of this game is pretty famous but for those who are unaware: studio lead and director Peter Molyneux was an interesting guy. Like a lot of the 90s era gaming visionaries, he saw through the limitations of hardware and finance and wanted to pursue products of his totally realized vision. And like so many creators before and after him, he fell in love with his ideas--when sharing them with the world he talked about what he wanted the game to be, he talked about a total open world filled with choices and consequences where one could truly determine their nature in the world. Problem is, a lot of what he talked about just couldn't be done to the extent of his vision.
Fable is not what he promised, and that made a lot of people mad enough to fully disregard the series. However, what it is is still rather deep, very fun, filled with small choices and small consequences, and still tries to demonstrate the players actions shaping the world.
Combat is simple but thanks to unrestricted use of melee, ranged, and magic attacks, the combat always tends to feel fresh and varied.
The story is actually quite good, introducing us to the rather believable and lived-in world of Albion, a few nicely colorful characters and some genuinely twisty twists. The tone precariously balances on Monty Python humor and mid-fantasy seriousness but rarely stumbles and screws up. The result is a game where you can fart at somebody on command AND witness familial death and not have the two mess with each other.
Almost every character in this world is also importantly a character. This is not a game where most NPCs are called trader, vagrant, merchant, etc. A lot of them have names and routines (store owners go home at night, etc) and most can be befriended through interactions and gifts. Most of the opposite gender can be romanced and married, and if you also own a house (can be bought), you can sleep with your partners.
The main failing is the concept of being good or bad: there is no nuance--you will always be given a choice of helping or hurting someone, and general actions also tend to fall into moral good or bad. Breaking into a house is always bad, stealing is always bad, etc.