Fable III will be hitting store shelves in less than 30 hours, so I'd wager than this preview on Hooked Gamers is the last we'll see before the reviews start rolling in.
Fable III introduces a new element in which your hero can actually touch other characters; touch meaning hugging, kissing, and most likely other ways if you use your imagination. You can also hold someone's hand and take them where you'd like. But this does not mean you have to go around and touch everyone - after all, you want to gain friendly relationships. Every character has a thorough memory and Fable III has a detailed relationship system to keep track of it all. A complete stranger would feel differently towards you compared to your best friend, or a lover. And, naturally, the gender of your character will affect many outcomes with the characters.
And, as a monarch, you will want to make sure that the reins of the nation stay in your family. To this end, you will be able to marry or impregnate a co-op character. And if your opinions about who should be let into your bedroom run against the biological measures of acquiring an heir, there is also an option to adopt a child to inherit your power when the time comes.