Re: Free Roaming
I think it'd be a safe bet to assume that there will be explorable areas, yes.
As to whether the areas will be as large or not, perhaps some speculation may help...
i do believe that travel to other continents in the Fable world will be possible, so one would assume that there would be quite a bit of free-roaming due to the fact that PM is trying to make a game where people can look around and feel immersed, so, it'd be a safe bet to go with the answer:
Yes, Free-roaming is most probably in Fable 3.