I agree that the combat is certainly much better in this game but you really can't compare what Fable was "supposed" to be with what the KoA:R demo is. Fable was supposed to be a sprawling open world where every choice had its consequence, a game where you could join up with the bandits or fight them, where planting an acorn would would eventually grow into an Oak (or whatever acorns turn into). Fable (as much as I enjoyed it) was never what it was supposed to be, it was a handful of gimmicks cobbled together into some semblance of an RPG. That said I still enjoyed Fable and Fable 2.
What the KoA:R demo seems to be is a better version of what Fable turned out to be. For me it seems to be Fable without any of the gimmicks distracting you from what this game actually appears to be, and that is a well crafted ARPG.