I kind of like the idea. Quite depressing, but hopefully it's showing that the story might be deeper. I liked the concept of Bowerstone Old Town, when I thought it would be poorer (Alas, it becomes too close to the Market when I play as a good character), because it added depth.
It shows a bit of smog. I want smog and weather!

It's concept art like this one and the Bower Lake (I'm sure we've all seen it) that makes me really look forward to Fable 3.