TL;DR: The new Fable game removes the traditional good and evil morality system, focusing instead on a location-based reputation that changes with each settlement. Players won’t alter their appearance based on deeds but can customize their hero’s look with cosmetics and gear.
The changes to the morality system actually sounded pretty cool to me, though what I read did not mention it would no longer affect your appearance (though this also makes me happy because I don’t want to look like a fucking angel OR a stinky devil person). A lot of what they are changing sounds more like they are trying to make the game as close to what was originally promised instead of what we actually got, and the NPC changes were pretty chief to it.