Fable 2 - Solves the Han Solo Problem

You may recall a conversation MTV Multiplayer had some time back with Todd Howard about how the prevalent good/evil dichotomy (arguably championed by BioWare) design in RPGs tended to reward extreme behaviour - pure good or evil - leaving so-called Han Solos lost in the middle.  Speaking with Peter Molyneux, they discuss Fable II's solution:

Molyneux explained one way he prevents players from so easily being swayed to being perfectly good when they play the game is through sacrifice.

“If you saw a family there and had to kill these bandits to save the family,” he hypothesized, “you’d kill the bandits to save the family. If I said to you, ‘okay, to save this family, you give up half your gold.’ Would you give up half your gold to save the family? Maybe you would, don’t know. The most interesting one is if I said ‘to save that family, you must be horribly, grotesquely scarred and there’s no way of ever removing the scar or the aging.’ What we found is that far, far fewer people were willing to sacrifice that.”

Does it solve the problem or encourage everyone to play some shade of neutral?