Fable 2 - Preview @ ActionTrip

ActionTrip has a preview of Fable 2, presumably based on GDC material:

In light of Molyneux's apparent resolve to embody Fable into a semi life-sim, the sequel is meant to advance in that very direction. Apart from being able to come home and be welcomed by one's family, the player may look forward to having a rather loyal companion by his side at all times. Of course, Peter M. articulated this particular facet a number of times, so I'm sure most of you know it by now. As part of the new experience, your new canine companion will faithfully stick close no matter what. The dog becomes a trustworthy sidekick very early on in the game; during your childhood, in fact. Similarly to your avatar, the dog represents the very reflection of your actions. Its appearance alters according to the important moral choices made throughout the course of your adventures. Being evil and ruthless will, most likely, leave you with a serious-looking pet Doberman, whereas following the path of righteousness might result in having a cuddly and fluffy mutt (the kind that suits your benevolent character).