Did Lionhead Drop the Ball on Fable 2 Co-Op?

It appears that Fable 2 may not quite live up to the hype. In fact, according to Co-Optimus, it looks like we've all been misled as to how the cooperative mode actually functions. Players are unable to bring their character into their friend's game, instead they are stuck with a pseudo random henchman character. To make matters worse there are reports of save damaging bugs and camera glitches.