Everything Fable, plus some...sort of
The graphics, sound, replay, and gameplay haven't changed much at all, except for the fact that a few (and by that, I mean about 2-3) more hours have been beefed into the gameplay.
Pros:
-NEW STUFF TO DO AND COLLECT!
Cons:
-Same old Fable.
-New stuff is at the very end of the game, meaning you have to play through everything you've played through already, and then you can do the new side quests.
So, overall, I would say that Lost Chapters is better, and it is, but it's still the Project Ego that never happened.