Hello fellow Fable fans.
I have to agree with the sentiments of the OP. There is so much potential in exploring Albion and its rich history. That should have been the focus of the franchise. I also have to agree that I am not much of a fan of the parallel with British history. Not that British history itself isn't interesting, it just gives the series a sense of predictability. Fable V during a WW2 setting perhaps (Albion's "darkest" hour)? Who knows.
The first Fable was a great game (especially TLC) and I really enjoyed Fable 2, but I have to agree that Fable 3 was missing a lot of the elements that made the first two so enjoyable. The first two games were not without their issues, and many shortfalls, however my feeling is that rather than address them, Lionhead chose instead to simply do away with those issues.
For one thing, I found myself really wanting to explore Knothole Island in a lot more detail, especially the ruins. In conjunction with exploring the ruins, part of me was really, really wishing for a mechanic in the game to setup a town amongst the ruins, creating better living conditions for the townspeople of Knothole Island.
I wasn't too high on the industries part myself. I felt that the time period of Fable 2 (minus the guns) was the ideal time period for the franchise.