Actually, in the interview with GMR and PM, he said that he plans Fable 2, 3, and 4. I'll type what he said for you, since I have nothing else in my plans today
"Obviously whether or not we do a sequel or what happens to the property really solely relies on how successful it is. And I suppose we will be touching wood, crossing our fingers, and praying to the gods that it is successful. But I have, in the back of my mind, a clear vision for Fable 2, 3, and 4. Beyond 4, it gets a little bit hazy. There are some absolute, definite things wth Fable 2 that I would love to do.
My view on sequels is that they absolutely have to be more amazing and more wonderous and more inventive than the original was, especially the second [time] around. Normally in this industry we're used to seeing sequels that are little steps forward, but I think big steps are the important thing. The only thing about big steps is that big steps take longer to do, so people wait a long time. So one of the ideas is to take a small step, something smaller than a sequal perhaps. We'll see."
That'll make Neph happy, cause someone else agrees that sequels should be big steps.