Well that was unexpected to me. Way too soon is my gut reaction to this. Dont get me wrong, I love Fable 1 and 2, but I'm not quite ready for Fable 3, even if it is holiday 2010.
The episodic release strategy for Fable 2 is absolutely disgusting. I don't see any reason to do that UNLESS the total amount for all episodes, purchased separately or together, is less or equal to the price of the disk version. And after seeing the initial pricing for Games on Demand I seriously doubt that will happen.
"Everybody out of the universe!" - Nibbler, Futurama