What exactly is Fable III?

Peter Molyneux has said that Fable III is moving on from the RPG category.  In fact Fable III is more of an action/adventure title now.

"I'm not sure I even call Fable an RPG anymore, certainly not a 1990s RPG, for sure.

"In a way, you could look at it and say it's like an action adventure. There's a lot of drama, there a lot of story, there's a lot of emotion in there - but with levelling up. I love that levelling up....." (VG247)

This statement was made during Microsoft's X10 event where new details emerged about the upcoming RPG-less game. 

Fable III will not be sporting a health bar this time around.  Instead when your character gets hurt, the screen will begin changing colors like many shooters.  Another change is the expression wheel.  Long gone are the days of just making muscles and pointing to the bed.  Now you will actually be able to fondle (yes fondle), hold hands, and other types of touching to help interact with your people and loved ones.  You can even interact with your babies by touching now.

Besides the expression wheel being cast off into the shadows, experience is no longer rewarded.  Instead you gain experience as your followers grow.  Why the need to get rid of experience?  Speaking to Eurogamer Molyneux explains that gamers just didn't understand what the orbs meant.

"The absolute main reason is that most people didn't really understand it,

 When you asked people how to get red experience, they'd say, 'I don't know, sometimes it's green, sometimes it's red, sometimes it's blue."

 How will fans react to Fable III when it is released upon the world?  Who knows, but Fable fans better get use to Fable without the RPG factor.