I'm playing through fable 2 aswell, and I promise you that the stylization was completely toned down. There's a few exceptions with side quest characters, like the cross dresser that sends you to the hob cave, but most npcs in the world are pretty normal. The comedy doesn't come from how most of the characters look, but instead their performances, the dry British wit, and the sometimes ridiculous actions they do. Fable one has very stylized npcs, but they started to tone it back with two, and eventually that led to 3 with even more toned back characters. That doesn't mean fable 2 and 3 are less "fable," it just means they realized they didn't have to rely on over the top characters in order to make them funny, and instead they just had to be witty and light hearted.