Maybe. Just maybe. Speaking with Gamesindustry.biz, the Lionhead boss got surprisingly lippy about his dream of seeing Fable II become a wholly-digital download for the Xbox 360.
"I think it would be a great thing for this studio to work on", he told them. Bypassing the retail sector entirely, so developers and publishers could keep all the profits for themselves? Well of course it would be a great thing, Pete!
Interestingly, rather than play it cool, he immediately followed that up with "I can't say anything else on it – I would be killed to death". Which is over-excited-Peter-Molyneux for "oops, shouldn't have said that first bit".
That or there was an office bet to work Motorhead song titles into Pete's interviews. A bet Pete lost on a "by, not to" technicality.
As for the plausibility of 360 downloads...well, that 120GB HDD could certainly hold a few games.