hm, that's a good point. Houses that are close together give a very "neighborhood" vibe to me, but I would imagine it would be tough coming up with ways to fill the rest of the town. For my villagers planted their houses randomly and I organized everything around that. But there are still spots I want to keep clear, like the south beach entrance or the path way to my geyser. Once's you've played around with your town awhile, the picture of what you're aiming for becomes clearer and clearer.