Here is one that got overlooked i think, and maybe is not in the list
In the below Peter talks about how your
self, will make towns
or the noble heroes will make cities look majestic
Here it is
http://podcasts.aolcdn.com:80/xbox360fanboy/podcasts/gdc08-molyneux-interview.mp3
http://www.xbox360fanboy.com/2008/02/25/fancast-xtra-peter-molyneux-interview-at-gdc08/
http://www.xbox360fanboy.com/2008/02/28/x3f-interviews-peter-molyneux-about-fable-2-bc-xna/
And here is info for the growing cities, GDC06, i do not have link, but was from GDC06 in 1UP
Peter Molyneux Talks Fable 2 at GDC London
Wants his game better than Assassin's Creed, Mass Effect.
By 1UP Staff, 10/06/2006
'Dynamic Environments'
When playing RPGs, the feeling is "I don't seem to make a difference to the world."
In Fable, the story is set over the period of a lifetime. Peter Molyneux said that this was both frustrating to design for and yet, allows freedom to do things others can't do. A concept shot from Fable 2 was revealed - a beautifully painted campfire in the woods. Brightwood. When you are a teen in Fable 2, it's a spooky place inspired by Murkwood in LOTR.
The example detailed here was that in this location, you discover a Gypsy camp. If your character goes in and trades and is nice to everyone, you can do a quest to help the gypsies by clearing out woods of enemies called 'Hobbs'. However, if your character comes back in ten years, the camp will have changed into houses. Ten years further on, it's a little village. Ten years further, the village is a town!
But here's the twist; if you initially went into the camp and slaughtered everyone, the town wouldn't exist and that's an interesting thing for the player to experience, as everyone is likely to experience a different environment from one another.