Isn't that kind of a point of the Fable series? There's quite a bit of outlandishness to its British humor, right back to the first. It's never been a game or series purported to be hardcore realistic simulation, or even in the same serious vein that, say, Mass Effect 2 is a part of. No, not even if Molyneux said so, because there's times where we all have to understand that what he says and what is real doesn't actually sync up.
The name is Fable, it presents a world similar to that of a storybook, tells stories about heroes and destiny, and presents a generally light-hearted romp through its areas as an action-adventure RPG rife with outlandishness and Brit humor, even when they include some variable degree of "darkness" to the storytelling, which suggests something of an intelligent game design even if the games usually don't push much past average.
But it's really no less shallow in terms of world ambience than Mass Effect 2, Red Dead Redemption, Oblivion, L.A. Noire, Dragon Age, what have you. Those games, possibly with the exception of Oblivion, just have better storytelling, so it's not as glaring.